08:52 AM EDT, 03/10/2025 (MT Newswires) -- While there was no market reaction early Monday, Canada's election call took one step closer to becoming reality, said Scotiabank.

Mark Carney will take over the reins as prime minister at some point probably this week once PM Justin Trudeau officially resigns and once the Governor General asks Carney to form a new administration that will include selecting a fresh cabinet, noted the bank.

Carney might call a parliamentary election at any point and perhaps set in motion an April election, stated Scotiabank. In the end, it wasn't even a contest, as Carney took 85.9% of the vote on the first ballot yesterday.

Key for new PM Carney and opposition Conservative Leader Pierre Poilievre will be to stand firm against the United States administration's "foolish" trade policies and to hope Canada can then navigate toward more constructive policy options, added the bank. For instance, tax cuts in a trade war would likely be hoarded with little effect in Scotiabank's opinion.