Canada’s leading stock market in Toronto is marching higher on reports that newly installed Prime Minister Mark Carney plans to call a snap election in coming days that will send voters to the polls on April 28.
Carney was sworn in as Canada’s prime minister on March 14, succeeding Justin Trudeau who stepped down from the role after a decade in power. Now, Carney is reportedly planning to roll the dice with a snap election and seeking to capitalize on a wave of patriotism that has swept the country in the wake of U.S. import tariffs. Media reports say Carney plans to drop the election writ on March 23.
Since Trudeau’s resignation and U.S. President Donald Trump’s inauguration in late January, Canada’s ruling Liberal Party has experienced a surge in popularity, according to the polls. The latest survey by Nanos Research shows the opposition Conservative Party leading the Liberals by just one percentage point at 35%, which is within the statistical margin of error.
Prior to Trudeau stepping down, the Conservatives enjoyed a 20 percentage point lead over the Liberals.
Stocks Respond
Stocks in Canada are responding positively to news of a general election, with the benchmark Toronto Stock Exchange up 1% on the day. The index is flat on the year due largely to growing uncertainty caused by trade tariffs imposed by the neighboring U.S. government and ongoing threats by Trump to annex Canada and make it the 51st state.
Analysts seem to agree that Trump’s trade war, and which political leader is best equipped to deal with it, are likely to be the main ballot box issues in the election. The most recent Nanos Research survey found that Trump and U.S. relations are the top issue of national concern in Canada at 27%, followed by the economy at 17%.
Is the iShares S&P/TSX 60 Index ETF a Buy?
The iShares S&P/TSX 60 Index (TSE:XIU), which tracks the 60 largest securities on the Toronto Stock Exchange, has a consensus Moderate Buy rating among 61 Wall Street analysts. That rating is based on 53 Buy, seven Hold, and one Sell recommendations issued in the last three months. The average XIU price target of C$43.54 implies 14% upside from current levels.
Read more analyst ratings on XIU
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