The election dust begins to settle

Canadian Prime Minister Justin Trudeau will now try to lead with a minority government. Based on how the election shook down, he will need to get all the parties to vote against him to trigger an election. Expect some internal turmoil in those parties and that means this government will last at least a year, and likely the full four-year term.

The caveat? If the economy stumbles then the knives will come out for Trudeau. Given the trajectory of global growth, that's a big risk.

The domestic economy is in focus today with Canadian retail sales for August due at the top of the hour. The consensus is for a 0.4% reading and a flat reading excluding autos.

Given the lackluster moves on the election, this report is likely to be a bigger market mover. We also get the BOC business outlook survey at 1430 GMT.