The inability of the Trump Administration’s to deliver on its pro-growth strategy is having a weighing effect on U.S. markets and driving Canadian equities to sell off.
Tuesday’s market drop of over one per cent in the S&P, along with a 1.6 per cent tumble in the TSX, is the biggest daily decline this year.
The TSX has fallen almost 700 points in the last 30 days, and is now negative on the year, with the biggest decliners being energy and financial stocks.
Adding to market malaise is a world awash in oil, as even this morning U.S. crude inventories rose by over five million barrels for the week, putting more pressure on oil prices.
And with one-third of global portfolio managers believing that equities are overvalued, the highest level on record going back 18 years, there may be a push for markets to move even lower.