Canadian stock market slumps after Obama's re-election win (2)

One of the most pressing issues facing the newly re-elected U. S. President Barack Obama is the so-called fiscal cliff, a combination of tax increases and government spending cuts that automatically takes effect unless Congress acts by Jan. 1. Economists warned that if this fiscal cliff is not avoided, the adverse effects on the economy could push the country back into recession.

On the Toronto Stock Exchange, almost all eight sectors posting losses, led by energy, which fell 2.2 percent on a day when oil prices were down more than 4 percent. Heavyweight Suncor Energy Inc and Canadian Natural Resources Ltd fell 2.7 percent and 4.1 percent to 33.67 Canadian dollars and 28.95 Canadian dollars per share, respectively.

Some Canadian earnings reports also dampened the market mood. One of the heaviest decliners on the main index was fertilizer producer Agrium Inc, the Canada's second largest potash producer, down nearly 11 percent to close at 95.03 Canadian dollars per share, after it reported lower quarterly profit due to downtime at its potash mine and dragged-out contract talks with China and India.

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