Arguably, Canada's main stock market, the Toronto Stock Exchange, on Monday managed to even overshadow today's Federal Election in losing 336 points or 1.6% and dropping to near 20,155 -- although it did recover near 135 points in the hour since 3pm ET, when it stood a full 900 points off all time record intraday highs hit earlier this same month -- on a combination of factors, including China property market contagion fears.
Other factors weighing on the market include a looming FOMC announcement, prospects for higher taxes, the U.S. debt ceiling, and concerns over the growth picture all conspiring against investor.
For its part, National Bank of Canada in a note entitled 'The election effect so far' said the impact of the election on Canadian equities is "a bit murky." As expected, it noted, the S&P TSX is under clear pressure to start the week, but no more so than other key indices. If anything, the bank added, the TSX has managed to outperform the S&P 500 (and a host of other major indices) since the election was called, notwithstanding a good deal of noise related to prospective Liberal-NDP tax measures."
National noted seat projections suggest we could end up with something closely approaching the status quo -- that is, a Liberal party with the most seats but shy of a majority.
All sectors were in the Red today, With Energy down 2.5%, Financials down 1.7% and Materials down 0.75%.
Of commodities, gold ended higher on Monday as investors moved to cut risk on concerns over the health of China's economy as a major real-estate developer struggles to service its debt, while this week's meeting of the Federal Open Market Committee is adding an additional cautionary note. Gold for December delivery closed up $12.40 to US$1,763.80 per ounce.
But oil prices fell on concerns over the health of China's economy and as U.S. Gulf of Mexico production continues to recover from the passage of Hurricane Ida through the region last month. West Texas Intermediate crude oil for October delivery closed down $1.68 to US$70.29 per barrel, Marketwatch reported. November Brent crude, the global benchmark, was last seen down $1.31 to US$74.03 while Western Canada Select was down $1.23 to US$58.67 per barrel.