Vote Against Canadian Government Caused Its Collapse

from Chaotic Fate by qew

http://www.financialfeed.net/vote-against-canadian-government-caused-its-collapse/

Posted by Amy Morris on Mar 26, 2011 in Economy | View Comments

Investors tend to dismiss some news due to a shifting political economy.

Canada’s Conservative minority government that started in 2006 and led by Prime Minister Stephen Harper collapsed after Friday’s no-confidence vote by opposition groups. The move set the federal election to be held in May, the 4th in 7 years. The Conservative government was accused of economy mismanagement and lack of transparency.

The voting in the House of Commons result was 156-145 which came 2 days after the Liberals, the Bloc Québécois and the New Democrats, 3 opposition parties that rebuffed the Conservative’s budget.

The news’ blow was softened with the S&P/TSX Composite Index which managed to close positively even if the gains were reduced towards the end. The benchmark index went up by 10.02 points and closed at 14,039.3.

US Rates Research & Strategy senior macro strategist Millan Mulraine said there is a tendency for investors to dismiss such news because of shifting political economy outlook’s limited impact. The U.S. dollar purchased Canadian cents at 98.07 from earlier 97.74 and Thursday’s 97.59.

Citi’s G10 foreign-exchange strategy head Steve Englander said, much of the discussion in Canada suggests that the Conservatives have outmaneuvered the opposition into an election viewed as unnecessary by most Canadians and may just end up status quo.