Canada’s main stock index fell on Monday, as commodity prices retreated and higher bond yields halted a global stocks rally heading into the year-end.
The TSX jettisoned 302.08 points, or 1.2%, to begin Monday at 24,494.32.
The Canadian dollar dipped 0.01 cents to 69.36 cents U.S.
Market participants at home are bracing for major policy changes across the border, with Donald Trump’s return to the White House in January. Trump has pledged a 25% tariff on all imports from Canada, in a blow to the country’s crude exports to the U.S.
Canada’s new finance minister Dominic LeBlanc and foreign affairs minister Melanie Joly met aides to Trump in Florida on Friday to discuss the risks of imposing new tariffs.
On the data front, monthly U.S. employment data on January 10 could give investors a fresh view into the health of the world’s largest economy.
Canada’s monthly employment data, released on the same day, may provide cues on the Bank of Canada’s rate trajectory. Bets for a 25-basis-point rate cut by the central bank in January currently stand at 67.6%.
In commodities, gold prices slipped in thin trade, while other base metals were broadly mixed, with a stronger dollar making the greenback-priced commodities more expensive for holders of other currencies.
ON BAYSTREET
The TSX Venture Exchange folded 7.67 points, or 1.3%, to kick off Monday at 590.20.
All but one of the 12 TSX subgroups lost ground, with health-care ailing 2,1%, information technology clicking 2% lower, and gold losing 1.8%.
The lone holdout was in energy, up 0.3%.
ON WALLSTREET
Stocks moved lower on Monday in one of the last few trading sessions of 2024, potentially putting a sour ending on a banner year for investors.
The Dow Jones Industrials wilted 714.13 points to begin a short week at 42,278.08.
The S&P 500 index slipped 94.73 points, or 1.6%, to 5,876.11.
The NASDAQ stumbled 333.81 points, or 1.7%, to 19,388.22.
There was no apparent news catalyst for Monday’s decline and trading was expected to be light given the shortened week.
The major averages are heading into the yearend shy of record levels, with the S&P 500 surging 25% and Dow up more than14%, and on track for the best year since 2021. The NASDAQ has gained more than 31% in 2024.
The benchmarks are also headed for a winning fourth quarter, with the NASDAQ on pace for its longest quarterly winning streaking since 2021.
However, some worries have mounted that the market may be losing momentum, with what appears to be year-end profit taking after the major averages notched losing sessions Friday. Large tech stocks were struggling again on Monday, with shares of Tesla and Amazon each falling more than 1%.
Investors are hoping that stocks will find their footing again and trigger what’s known as a Santa Claus Rally. The phenomenon refers to the market rising into the final five trading days of a calendar year and the first two in January. The S&P 500 has returned 1.3% on average during this period since 1950.
The upcoming days are a light period for economic data, with the market closed Wednesday in observance of New Years Day.
Prices for the 10-year Treasury regained ground, lowering yields to 4.54% from Friday’s 4.61 %. Treasury prices and yields move in opposite directions.
Oil prices tacked on 54 cents to $71.14 U.S. a barrel.
Prices for gold ditched $18.20 an ounce to $2,613.70 U.S.