Exchange traded funds (ETFs) focused on our neighbors to the north could feel the impact of early elections.
The country’s prime minister’s call for an such an election will be their third national ballot in four years.
The prime minister says the Oct. 14 election could produced another minority government, but recent polls point to the strength in the Conservative party without any help from opposition parties. It seems especially true now, while the Canadian economy isn’t doing too poorly and before the U.S. presidential elections would have an influence, reports the Associated Press.
Conservative Prime Minister Stephen Harper is running on economic issues, and he has stressed his opposition to an energy tax proposed by the Liberals. Harper pulled Canada out of the Kyoto Protocol, while Liberal leader Stephane Dion’s energy tax plan hasn’t caught on with Canadians. He wants to increase taxes on greenhouse gas emitters, while Conservatives say it would kill jobs and drive up energy costs.
iShares MSCI Canada Index (EWC) could be affected regardless of who wins, as around 31.3% of EWC gives itself toward energy.
Conservatives in Canada unseated the Liberal Party in 2006 after 13 years of power, but has been a minority government relying on opposing lawmakers to pass legislation and adopt budgets. If the Conservative party dominates, the economy could be rewarded by political stability and an ability to “get things done” at a reasonable pace.