Canadian stock market slips ahead of U.S. election (2)

The general view of the election outcome on Wall Street which sets the tone for the Canadian market was that election will probably lead to fiscal and foreign policy change of the U.S. economy as well as the world. If Obama wins a second term in the White House, both U.S. economic growth and interest rates will stay low and it will favor owning bonds over stocks.

On the other hand, if Romney becomes the 47th U.S. President, investors reckon his policies will boost corporate profits and lift U.S. stock markets to new highs.

Awaiting the result, five of the eight sectors on the Toronto Stock Exchange closed down, led by energy sector. Oil giant Suncor Energy dropped 0.6 percent at 34.44 Canadian dollars per share. Financial stocks also led the market lower. Royal Bank of Canada lost 0.4 percent to 57.35 Canadian dollars per share, and Bank of Nova Scotia was down 0.4 percent to 54.44 Canadian dollars per share.

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