Canadian Prime Minister Justin Trudeau has hung on to power after a tight election that saw his government reduced to a minority, results that will likely push his agenda to the left while alienating energy-producing provinces.
Trudeau, one of the world's most prominent progressive politicians, struggled amid domestic scandals. He now looks set to govern with support from the left-leaning New Democrats, who have 24 seats.
His Liberals did not win any seats in the oil-rich provinces of Alberta and Saskatchewan in Monday's election. The party was leading or elected in 157 seats, a decrease of 20, preliminary results showed.
Minority governments in Canada rarely last more than 2-1/2 years. Although the New Democrats lost 16 seats, leader Jagmeet Singh is positioned to press for action on priorities such as more social spending and increased action on climate change.
One senior Liberal noted that many legislators need to serve another two years to meet the six-year requirement for a parliamentary pension.
"That gives us a pretty free hand for that period," said the Liberal, who requested anonymity given the sensitivity of the matter.
The New Democrats struck deals to help keep Liberal minority governments in power from 1972-1974 and in 2005.
Together the two parties can muster a majority 180 seats in the 338-seat House of Commons.
The Canadian dollar weakened 0.2 per cent to $C1.3120 to the US dollar, or 76.22 US cents, as investors worried about how the minority government would manage the resource sector. Canada's main stock index edged higher at the open.
Trudeau visited Montreal's subway, posing for selfies with commuters early on Tuesday, an echo of 2015 when he did the same thing.
This win was different. But Trudeau barely mentioned the loss of his majority when he spoke to supporters early on Tuesday, saying he had "a clear mandate" for a progressive agenda and more action to combat global warming.
This is unlikely to please the western provinces of Alberta and Saskatchewan, which cast out every Liberal legislator amid anger over what the energy industry sees as overly stringent environmental rules.
The most prominent victim was Ralph Goodale, one of Trudeau's top cabinet members who served as public safety minister.
Trudeau's liberal image took a blow early in the campaign when photos emerged of him wearing blackface in the early 1990s and in 2001.
He had already been wrestling with the fallout from accusations he pressured former justice minister Jody Wilson-Raybould to help shield engineering firm SNC-Lavalin Group from corruption charges. In August, a top watchdog said he had breached ethics rules.
Wilson-Raybould, now an independent member of parliament, retained her seat on Monday, a feat in a country where nearly all legislators are backed by major parties.
Former minister Jane Philpott, who also quit cabinet over the affair and ran as an independent, lost her Ontario riding.
Preliminary results gave the Liberals 33.1 per cent of the popular vote, below the opposition Conservatives' 34.4 per cent.
The election was a disappointment for Conservative leader Andrew Scheer, who had sought a majority. With nearly all votes counted on Tuesday morning, his party was leading or elected in 121 ridings, up only 24 seats.
Scheer said he would continue to lead the party, but the result looks set to reopen questions about his future. Even before the election, some in the party were speculating about a leadership challenge if he lost.
Australian Associated Press
