TORONTO 鈥� Canada's main stock index moved lower Monday, weighed down by energy stocks as the price of oil fell, while U.S. stock markets rose.
The S&P/TSX composite index closed down 33.93 points at 25,410.35, while the Dow Jones led the way with an almost one-per-cent gain.
鈥淭he themes of the last couple of weeks are familiar again today,鈥� said Steve Locke, chief investment officer for fixed income and multi-asset strategies at Mackenzie Investments.
Specific sectors that investors think could benefit from president-elect Trump鈥檚 promised policies have been leading the way, said Locke, such as financials, industrials and health care.
In New York, the Dow Jones industrial average was up 440.06 points at 44,736.57. The S&P 500 index was up 18.03 points at 5,987.37, while the Nasdaq composite was up 51.19 points at 19,054.84.
Amid the transition period before Trump becomes president, Locke said investors are eyeing pieces of information that could help illuminate what鈥檚 to come, in the form of nominations.
The latest announcement was Scott Bessent, a hedge fund manager, for Treasury Secretary.
鈥淭he markets reacted positively to his announcement,鈥� said Locke.
鈥淚 think the candidate here ... is someone that the market feels a little bit more comfortable with in the context of gradual imposition of tariffs and things like that.鈥�
U.S. Treasury yields eased on Monday, after climbing post-election.
Yields were on the rise after the election as markets priced in fewer rate cuts in the coming year, said Locke, in anticipation of Trump鈥檚 pro-growth policies.
However, though the election has been top of mind for investors, the U.S. Federal Reserve has a lot of economic data coming down the pipeline before its last interest rate decision this year, said Locke, including data this week on the housing market, consumer confidence, and manufacturing.
鈥淚t鈥檒l be a little bit of a mixture this week, we think, but nothing that probably changes the direction of the Fed here too much as we think about the expectations for policy rate changes in the upcoming meeting in December,鈥� he said.
Markets are currently split on whether the central bank will hold steady or announce another quarter-percentage-point cut, said Locke.
Oil prices fell Monday, which Locke said was likely tied to talk of a ceasefire deal between Israel and Hezbollah.
The Canadian dollar traded for 71.53 cents US compared with 71.54 cents US on Friday.
The January crude oil contract was down US$2.30 at US$68.94 per barrel and the January natural gas contract was up 16 cents at US$3.44 per mmBTU.
The December gold contract was down US$93.70 at US$2,618.50 an ounce and the March copper contract was up three cents at US$4.16 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Nov. 25, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
