TSE

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.

Bank of Canada Interest Rate Decision: The Bank of Canada is expected to maintain its overnight interest rate at 2.75% during the upcoming policy meeting, with low chances of a rate cut due to recent inflation data and a resilient labor market.

Economic Outlook and Stock Performance: Despite an unexpected job increase in June, the Canadian economy faces challenges such as a potential contraction and ongoing tariff disputes with the U.S., affecting stock performance, particularly for companies like Canada Goose, which has a Moderate Sell rating from analysts.

Dividend Announcement: Trinseo PLC will pay a dividend of $0.01 per share on July 24, yielding 1.2%, but concerns arise over the sustainability of this payment due to lack of profits and free cash flow.

Earnings Decline: The company's earnings per share have dropped by 51.8% over the past five years, leading to questions about future dividend payments and overall financial stability.