The Globe and Mail reports in its Thursday edition that the Trump administration's hostility toward Canada has prompted global investors to withdraw a record $35-billion from the Canadian stock market in the first quarter, as reported by Statistics Canada. The Globe's Tim Shufelt writes that this downturn is not surprising, given the economic instability caused by President Donald Trump's tariff threats and aggressive rhetoric, which have made Canada seem uninvestable to international investors. Canaccord Genuity analyst Martin Roberge says: "You can't really blame foreigners for being gun-shy to invest in Canada. It's a situation people are not willing to bet on. They'd rather wait and see." Despite the exodus of international investors, the Toronto Stock Exchange saw minimal impact, with the S&P/TSX Composite Index posting a small gain. Still, non-residents acquired nearly $50-billion of Canadian bonds in the first quarter, continuing a buying streak that has seen American investors load up on government of Canada paper.
"This is one export we can't take for granted," Warren Lovely at National Bank of Canada, wrote in a recent note. Foreign ownership of the national bond stock is at a record 40 per cent.
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