Canada’s main stock index tumbled Monday in light trading.
The TSX dumped 175.81 points to conclude a “selling” Monday at 24,620.59. But it has advanced 16.9% this year and is set to record its best since 2021.
Even so, Canadian equities are set for their worst month since May 2023, partly due to the U.S. Federal Reserve’s forecast of fewer rate cuts next year and domestic political uncertainty.
Market participants are also bracing for policy changes in the United States with Donald Trump’s return to the White House.
The Canadian dollar gained 0.24 cents to 69.66 cents U.S.
Health-care issues were hit the hardest, with Tilray punished nine cents, or 4.4%, to $1.95, while units of Chartwell Retirement Residences surrendered 21 cents, or 1.4%, to $14.97.
Gold stocks were also duller, with Equinox trailing Friday’s levels 24 cents, or 3.1%, to $7.16, while Seabridge Gold sank 61 cents, or 3.6%, to $16.13.
In materials, SSR Mining chucked 34 cents, or 3.3%, to $9.84, while Pan American Silver lost $1.05, or 3.5%, to $28.61.
Energy proved the lone bright spot, with Birchcliff Energy forging ahead 29 cents, or 5.8%, to $5.33, while Advantage Oil gained 48 cents, or 5.3%, to $9.60.
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 lost 4.47 points to close Monday at 593.40.
All but one of the 12 TSX subgroups lost ground, with health-care sinking 1.8%, gold falling 1.7%, materials weaker by 1.5%,
The lone holdout was in energy, up 0.8%.
ON WALLSTREET
Stocks moved lower Monday in one of the final trading sessions of 2024, potentially putting a sour ending on a banner year for investors.
The Dow Jones Industrials ended Monday off 418.48 points, or 1%, to 42,573.73.
The S&P 500 index slipped 63.9 points, or 1.1%, to 5,906.94.
The NASDAQ swooned 235.25 points, or 1.2%, to 19,486.78.
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 23% and Dow up13%, and on track for the best year since 2021. The NASDAQ has gained more than 30% 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.
Large tech stocks were struggling again Monday, with shares of Tesla losing 2.6% and Meta Platforms falling 1.1%. Chip giant Nvidia did rise 1%, helping to stem losses elsewhere.
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 56 cents to $71.16 U.S. a barrel.
Prices for gold backslid $9.40 an ounce to $2,622.50 U.S.
