Canada Faces Capital Outflow as Foreign Investors Withdraw Their Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy NDAQ?
Source: TipRanks
Foreign Investment Trends: Foreign investors are significantly reducing their holdings in Canadian stocks and bonds, with a $3 billion decrease in June following an $11.5 billion drop in May, primarily affecting bank stocks.
Bond Purchases Decline: Although foreign purchases of Canadian bonds totaled $6.9 billion in June, this represented a nearly 30% decline from May's $9.7 billion, with notable reductions in federal government bond holdings.
Canadian Investors Shift Capital: Canadian investors are also moving capital out of the country, buying $9 billion in foreign securities, mainly U.S. stocks, leading to an overall capital outflow of $43.7 billion in the second quarter.
Economic Uncertainty: The divestment is driven by a global search for safe-haven assets amid tariff uncertainties impacting the Canadian economy, prompting calls for a new trade deal with the U.S. to stabilize investment.
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Analyst Views on NDAQ
Wall Street analysts forecast NDAQ stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 88.050
Low
101.00
Averages
111.50
High
123.00
Current: 88.050
Low
101.00
Averages
111.50
High
123.00
About NDAQ
Nasdaq, Inc. is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. The Company manages, operates and provides its products and services in three business segments: Capital Access Platforms, Financial Technology and Market Services. Its Capital Access Platforms segment comprises Data & Listing Services, Index and Workflow & Insights. The Financial Technology segment comprises Financial Crime Management Technology, Regulatory Technology and Capital Markets Technology businesses. Its Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading. It operates over 19 exchanges across several asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange-traded products (ETPs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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