Chrystia Freeland has resigned from her role as Canada's Finance Minister, causing the nation's stock market to push lower.
The resignation comes just before the federal government is set to release its Fall Economic Statement. The departure of Freeland could signal upcoming changes in the cabinet, with Scotiabank (TSX:BNS) economist Derek Holt highlighting the importance of the day for Canada and suggesting potential cabinet shuffles by Wednesday.
Holt also provided insights into Canada's fiscal situation, pointing out concerns regarding the federal deficit. He noted in a client note that one of the fiscal targets, which is to keep the fiscal year 2023-24 federal deficit below $40.1 billion, appears very unlikely to be achieved.
Furthermore, he expressed skepticism about meeting the other two fiscal targets, especially in the event of trade wars, which could further challenge Canada's economic objectives.
The market's reaction was mixed, with a majority of stocks trending downward. Out of 219 stocks, 158 experienced a fall, while 58 saw gains.
Rogers Communications (TSX:RCIa) Inc. was among the notable decliners, with its shares dropping by 2.8%. Conversely, BlackBerry (NYSE:BB) Ltd. stood out with a notable increase, as its shares surged by 12%.
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