Government spending cuts set to go into effect in the near-term could hurt more than just U.S. companies, but also many of those to the North listed on the Toronto Stock Exchange. These cuts are expected to amount to just over $85.3 billion and could have a broad impact on many Canadian companies that have been beneficiaries of the programs.
Turbulent commodity markets haven't helped the case either, as the TSX is heavily weighted towards natural resource companies. Gold prices have been sliding, new mine development has stalled, and some companies reporting earnings this quarter have slipped. As a result, many investors are starting to step onto the sidelines until volatility calms again in Canada.