Investors Tense up as Fears of Post-Election Gridlock Rise in Canada

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto on Jan. 23, 2015. Mark Blinch/Reuters

TORONTO—Foreign investors are growing more worried that Canada’s federal election on Monday could result in a deadlock that hampers Ottawa’s response to the COVID-19 pandemic and further slows the economic recovery from the crisis.

Polls show Prime Minister Justin Trudeau’s center-left Liberals virtually tied with the opposition Conservatives ahead of the Sept. 20 vote, raising the prospect that no party will be able to form even a stable minority government. Adding to the uncertainty is an expected increase in mail-in voting that could delay the counting of ballots in some key electoral ridings.