TSX Plummets Following Finance Minister Freeland's Resignation

Canada's Finance Minister Chrystia Freeland's resignation has led to a decline in the country's stock index. The resignation occurred just before the federal government's Fall Economic Report was to be announced. Freeland's departure may indicate impending changes in the cabinet. Scotiabank economist Derek Holt emphasized the significance of the day for Canada, noting that potential cabinet changes could occur by Wednesday.

Holt also shared his views on Canada's financial situation, highlighting concerns regarding the federal deficit. In a note to clients, he stated that one of the financial targets, keeping the federal deficit for the fiscal year 2023-24 below $40.1 billion, is highly unlikely. He also expressed skepticism regarding the achievement of the other two financial objectives, emphasizing that Canada's economic targets could be even more strained, particularly in the context of trade wars.

The market's reaction was mixed, with the majority of stocks trending downward. Out of 219 stocks, 158 experienced declines, while 58 saw gains. Rogers Communications Inc. was among the significant decliners, with its shares falling by 2.8%. In contrast, BlackBerry Ltd. posted a notable increase, with its shares rising by 12%.