On Monday, Canadian stocks initially showed a slight upward movement early in the session but declined as the day progressed. The S&P/TSX Composite Index, a key market benchmark, retreated from its initial gains, finishing down by 73.75 points or 0.3 percent, settling at 24,999.79.
The market's early buoyancy was partly due to a report from the Washington Post. This article suggested that the U.S. President-elect, Donald Trump, might reconsider his stringent tariff proposals. While Trump had initially proposed "universal" tariffs of 10 or 20 percent on all U.S. imports, the report indicated that his team was evaluating a plan to impose tariffs selectively on "critical imports" from each country.
However, enthusiasm in the market diminished as Trump later refuted the report, labeling it as "fake news."
Further contributing to the downturn on Bay Street was the announcement of Canadian Prime Minister Justin Trudeau's resignation. Trudeau declared his intention to resign as both Prime Minister and leader of Canada's ruling Liberal Party, pending the selection of a new leader by the party.
Gold stocks experienced a significant decline, influenced by a reduction in the price of the metal, with the S&P/TSX Global Gold Index recording a 2.2 percent drop.
Additionally, consumer staples stocks faced downward pressure throughout the session, leading to a 1.6 percent decrease in the S&P/TSX Capped Consumer Staples Index. A noticeable downturn was also observed in healthcare stocks, as evidenced by the 1.5 percent decline of the S&P/TSX Capped Health Care Index.
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