Futures for Canada's main stock index slumped to a two-month low on Monday as oil prices dropped, while all eyes were on a federal election where Prime Minister Justin Trudeau could cling to power but looked set to lose his bid for a majority.
The TSX Composite dipped 111.74 points Friday to 20,490.36.
The Canadian dollar edged down 0.04 cents to 78.44 cents U.S.
September futures fell 1.5% Monday.
Trudeau may cling to power in Monday's election but looks set to lose his bid for a parliamentary majority after a tough campaign that dashed his hopes for a convincing win.
The Teamsters Union has launched campaigns to organize employees in at least nine Canadian facilities of U.S. e-commerce company Amazon.com.
National Bank upped the price target on Canadian National Railway to $151.00 from $144.00
National then resumed coverage on Integra Resources with an outperform rating.
CIBC raised the price target on Lightspeed Commerce to $195.00 from $155.00
ON BAYSTREET
The TSX Venture Exchange subtracted 9.07 points Friday to 886.83.
ON WALLSTREET
U.S. stock futures began the week deeply in the red as investors continued to move to the sidelines in September amid several emerging risks for the market.
Futures for the Dow Jones Industrials plummeted 617 points, or 1.8%, to 33,845.
Futures for the S&P 500 stumbled 69 points, or 1.6%, to 4,352.75. The blue-chip Dow and the S&P 500 are poised for their biggest selloff since July 19.
Futures for the NASDAQ Composite Index swooned 219 points, or 1.4%, to 15,107.
There were a number of reasons for the selloff:
The Federal Reserve begins a two-day meeting Tuesday and investors are worried the central bank will signal it’s ready to start pulling away monetary stimulus amid surging inflation and improvement in the job market.
COVID cases because of the delta variant remain at January levels as colder weather approaches in North America.
September has the worst track record of any month, averaging a 0.4% decline, according to the Stock Trader’s Almanac. History shows the selling tends to pick up in the back half of the month.
Stocks have struggled so far in September in line with historical trends. For the month, the Dow is off 2.2%. The S&P 500 is lower by about 2% and the NASDAQ Composite is lower by 1.4%.
Stocks linked to global growth were down the most in pre-market trading Monday. Ford and Carrier Global lost more than 3%. General Motors and Boeing fell about 2% each. Nucor steel shed 2.8%
Energy stocks tumbled as WTI crude oil fell 2% on concerns about the global economy. Occidental Petroleum, Hess and Devon Energy were among the biggest losers in pre-market trading.
Big bank stocks took a hit as the falling rates may crimp profits. Bank of America and JPMorgan Chase were each down more than 2% in premarket trading.
Overseas, in Japan, markets were closed for holiday Monday, while in Hong Kong, the Hang Seng index slumped 3.3%.
Oil prices cratered $1.77 to $70.20 U.S. a barrel.
Gold prices acquired six dollars to $1,757.40 U.S. a pound.
