- Negotiations for the renewal of a three-way trade deal involving Canada and the US were held, with Greer criticizing Canada's stance.
- Trump's tariffs are affecting Canadian industries, prompting manufacturers to relocate production amid trade tensions.
- U.S. trade policy is hindering Canadian market access.
- US political figures and policies are impacting Canadian trade and economy, leading Ottawa to lobby for exemptions.
Market Sentiment Shifts in Canada and U.S. Following Midterm Election Results
What happened
Stock markets in Canada and the U.S. rallied early Wednesday after Donald Trump’s party suffered losses in the midterm elections. The S&P 500 jumped 1.1 per cent, and the Nasdaq composite rose 1.7 per cent. On the TSX, the Canadian stock exchange surged about 1.4 per cent, and the Canadian dollar's U.S. exchange rate also rose.
From globalnews.ca
Why it matters
Capital Economics notes that markets generally prefer divided government because it suggests less risk of sweeping policy changes that could disrupt the economy. The analysis suggests that the magnitude of the gains for the Democrats does not significantly change the near-term policy outlook.
U.S. political figures and policies are impacting Canadian trade and economy, leading Ottawa to lobby for exemptions, as U.S. trade policy is hindering Canadian market access.
From globalnews.ca
Who's involved
- Donald TrumpSubject of the political losses and policy outlook analyzed by Capital Economics.
- Capital EconomicsProvides expert analysis on the economic impacts of Donald Trump's policies.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Bank of AmericaSpeculative
May see changes in demand for financial analysis due to shifting risk profiles.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Nasdaq composite rises after US midterm election lossesNasdaq composite rose 1.7 per cent following US midterm election lossesAlready happening
- Capital Economics analysis may shape CBS News coverage of US politicsCapital Economics analysis may shape CBS News coverage of US politics.Possible
- Political uncertainty may shift demand for financial services at Bank of AmericaMarket uncertainty from US politics may lead to mixed demand for financial services at Bank of America.Possible
- US political uncertainty may influence Federal Reserve outlookPolitical uncertainty and market shifts could influence the Federal Reserve's policy outlookPossible
Keep exploring
The entities involved
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
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Capital Economics
UK business
Nothing else this week.
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