The Canadian dollar weakened against the greenback on Tuesday and its heavily weighted energy sector fell on the Toronto stock market, as investors worried that a minority government would make building of new oil pipelines more difficult.
Canada’s energy industry saw its worst-case election result materialize on Monday as the Liberals failed to secure a majority government, leaving them in need of support from left-leaning parties that are opposed to new oil pipelines.
Canada’s energy sector declined 0.5% even as oil prices rose, with shares of Canadian Natural Resources Ltd falling 0.8 and pipeline company Encana Corp down 1.4%.
The energy sector has the second largest weighting on Toronto’s benchmark stock index at about 16%, while oil is one of Canada’s major exports.
“The market will be watching closely for signs…