So much for investors and financial markets reacting negatively to a Liberal government.
The Canadian dollar added to early gains while the country’s main stock index outperformed its American counterparts Tuesday morning in the wake of elections that lifted the federal Liberal party to a majority government in Ottawa.
The loonie, though volatile, traded up nearly half a U.S. cent in late morning trade, rising 0.41 of a U.S. cent to 77.22 cents US.
The Toronto Stock Exchange’s S&P/TSX composite index meanwhile rose 120.4 points at 13,869.55 in morning trade.
In contrast, major U.S. indexes started the session lower.
The Dow Jones average of 30 stocks was up 21.95 points at 17,252.49, the broader S&P 500 futures gained 3.57 points to 2,037.23 and while the Nasdaq reduced its loss to 2.93 points at 4,902.54.
MORE: Here’s how Canadian stocks could create to federal election results
On the commodity markets, North American benchmark oil prices were up 41 cents at US$46.30 a barrel and the November contract for natural gas was up five cents at US$2.49.
A day earlier, it didn’t appear as though financial markets were receptive to a Liberal government in Canada.
On Monday, the S&P/TSX composite index closed down 79.72 points at 13,758.38, while the commodity-sensitive Canadian dollar also took a hit. It pulled back 0.64 of a U.S. cent to 76.81 cents US.
WATCH: Liberal majority elected to power Monday night.
Comments