Canada’s main stock index opened higher on Tuesday, hurt by consumer discretionary shares, as cautious investors geared up for the outcome of a closely contested U.S. presidential election.
The TSX gained 45.95 points to open Tuesday at 24,302.01.
The Canadian dollar edged forward 0.18 cents to 72.11 cents U.S.
While it could take days to declare the final winner, key focus will be on the battleground states of Georgia, North Carolina, Pennsylvania, Michigan, Arizona, Wisconsin and Nevada.
With the United States being Canada’s biggest trading partner, the election outcome could have significant impact on the Canadian economy and will be closely watched by domestic investors.
In corporate news, Sun Life reported a better-than-expected third-quarter profit as Canada’s second-largest life insurer benefited from robust growth in its domestic and U.S. businesses. Sun Life shares garnered $1.54, or 2%, to $78.99
On the economic scene, Statistics Canada reported this country’s merchandise exports decreased 0.1%, while imports fell 0.4%. Consequently, Canada’s merchandise trade deficit with the world narrowed from $1.5 billion in August to $1.3 billion in September.
Also, minutes of the Bank of Canada’s October policy meeting, which resulted in a 50-basis-point interest-rate cut, would give more insights into the country’s policy easing cycle.
ON BAYSTREET
The TSX Venture Exchange added 1.12 points to 604.39.
All but three of the 12 TSX subgroups were positive in the first hour, with information technology ahead 0.6%, while utilities and financials surged 0.5% each.
The three laggards were real-estate, down 1%, communications, off 0.9%, and consumer discretionary stocks, hesitating 0.8%.
ON WALLSTREET
The S&P 500 rose solidly on Tuesday as traders awaited the results from a high-stakes U.S. presidential election.
The Dow Jones Industrials popped 308.02 points to 42,102.62.
The much broader index jumped 45.2 points to 5,757.89.
The S&P 500 is already up more than 19% year to date, an unusually strong run up ahead of an election, and is within 3% of its record high.
The NASDAQ gathered 161.79 points to 18,341,78.
The results could have a significant effect on where stocks end the year, but investors may want to brace for some near-term choppiness.
Data going back to 1980 suggests the major averages gain between Election Day and the end of the year, but typically fall in the session and week after. Uncertainty over the results could lead to even more shakiness in the market.
No clear election bets were emerging yet in stocks on Tuesday morning. Banks, which would stand to benefit from deregulation under GOP control, were higher but dramatically outperforming the broader market.
Shares of Nvidia rose 2%, but the chipmaker and bull market stalwart would appear to be insulated regardless of election outcome. Tesla rose more than 3%, though the electric car stock could be seen as benefiting from a Democratic victory or a Republican one, given CEO Elon Musk’s close ties to Trump.
On the earnings front, Palantir popped 16% on strong quarterly results and upbeat revenue guidance, while NXP Semiconductors fell 7% on a soft outlook due to macro concerns.
Prices for the 10-year Treasury swooned, springing yields to 4.36% from Monday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices jumped 78 cents to $72.25 U.S. a barrel.
Prices for gold retreated 80 cents an ounce to $2.745.40 U.S.
