Markets dropped Monday as Canadian investors awaited the outcome of the federal election, and U.S. investors braced for the latest word on interest rates from the U.S. Federal Reserve later this week.

In Toronto, the S&PTSX dropped 28.90 or 0.34%, top 8468.87. The TSX Venture Exchange slid 12.21 points or 0.77% to 1572.97.

In the U.S., markets fell slightly. The Dow Jones industrial average slid 14.75points, or 0.14%, to 10,357.09. The S& P 500 Index edged down 1.08 points or 0.10%, to 1133.35, while the Nasdaq composite Index fell 5.65 points or 0.28% to 2019.82.

On Wall Street, the sooner-than-expected transfer of power in Iraq provided some short-lived inspiration earlier in the day. But even the added reassurance about U.S. consumer spending – it rose 1% in May – did little to lift U.S. markets by day’s end.

On the TSX, energy issues racked up the second-worst decline as oil prices dropped on the news of the handover in Iraq. The energy sub-index fell 1.84%. Golds dropped 2.69%.

On the upside, the real estate sub-index shone brightest, increasing by 1.68%. Financials added 0.55%.

The Canadian dollar added 0.15¢ to US74.20¢ on Monday.

Aside from the interest rate announcement on Wednesday, investors will be looking to the U.S. job report on Friday. Economists are looking for 240,000 jobs to have been created in June.