Market Monitor – 12 April 2024
Insights

Market Monitor – 12 April 2024

Global stock markets have endured another challenging week as a result of signs that policymakers are struggling to keep inflation in check in the United States.

An unexpected rise in the March consumer price index figure led to increases in US Treasury yields, with investors now resigned to a maximum of two Federal Reserve interest-rate cuts this year. This represents a significant downgrade on the three or four reductions that were being widely forecast at the start of 2024. Meanwhile, ongoing geopolitical tensions in the Middle East, Ukraine and the Far East have done little to calm nerves, with oil prices remaining elevated and gold, often seen as a ‘safe haven’ asset, hitting an all-time high this week.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.1% down for the week so far, with the S&P 500 falling 0.1%. Losses were particularly sharp on Wednesday after March’s inflation print was published, but news of unexpectedly weak producer price data on Thursday helped share prices to stage a partial recovery. Positive trading news from companies in the travel sector was another source of optimism and a reminder that, while the resilience of the American economy may make interest-rate cuts less likely, it does offer some upside for stock markets.

UK

In the UK, the FTSE 100 closed on Thursday 0.2% up for the week so far, supported by buoyant oil and precious metal prices. Economic news remained mixed: retail sales in March were helped by the early Easter, but financial regulators warned that default rates on mortgages and loans are likely to rise over the months ahead. Bank of England officials, meanwhile, echoed their counterparts in the US in saying that markets may have underestimated how straightforward it would be to bring inflation back to target. Analysts now think it is unlikely the Bank will cut the base rate before August.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 1.3% for the week, while France’s CAC 40 lost 0.5%. These declines came despite the latest indications that the European Central Bank will be the first to relax monetary policy this year. The ECB kept rates on hold at Thursday’s meeting but president Christine Lagarde gave the clearest indication yet that she believes the battle against inflation is being won. Economic weakness in the eurozone could well force the ECB’s hand at its next meeting in June: new figures from Germany showed a decline in exports in February as a well as a record high for company bankruptcies.

Asia

In Asia, the Hang Seng index in Hong Kong gained 2.2% as its recent recovery continued. Investors shrugged off the news that a major ratings agency had downgraded China’s credit due to ongoing issues in its financial and real estate sectors, and instead focused on the optimistic 2024 growth forecasts issued by two international investment banks. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 1.2% to remain within touching distance of its recent record highs. The Tokyo market was particularly strong at the start of the week on news of a multi-billion-dollar investment by a major US technology firm in Japanese artificial intelligence developers, as well as reports of a recent surge in bank lending.

April 5
April 11
Change (%)
FTSE 100
7911.2
7923.8
0.2
FTSE 250
19725.9
19786.9
0.3
S&P 500
5204.3
5199.1
-0.1
Dow Jones
38904.0
38459.1
-1.1
DAX
18175.0
17946.3
-1.3
CAC 40
8061.3
8023.7
-0.5
ACWI
776.5
774.9
-0.2
Hong Kong Hang Seng
16732.9
17095.0
2.2
Nikkei 225
38992.1
39442.6
1.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 11 April 2024.

12 April 2024
Share article
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Key topics
Related topics

PDF

Market Monitor – 12 April 2024

Important information

For marketing purposes.

This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In the UK: Issued by Threadneedle Asset Management Limited, registered in England and Wales, No. 573204. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In Australia: Issued by Threadneedle Investments Singapore (Pte.) Limited [“TIS”], ARBN 600 027 414.  TIS is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) and relies on Class Order 03/1102 in respect of the financial services it provides to wholesale clients in Australia. This document should only be distributed in Australia to “wholesale clients” as defined in Section 761G of the Corporations Act. TIS is regulated in Singapore (Registration number: 201101559W) by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289), which differ from Australian laws.

 

In Singapore: Issued by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore 239519, which is regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). Registration number: 201101559W. This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

In Hong Kong: Issued by Threadneedle Portfolio Services Hong Kong Limited 天利投資管理香港有限公司. Unit 3004, Two Exchange Square, 8 Connaught Place, Hong Kong, which is licensed by the Securities and Futures Commission (“SFC”) to conduct Type 1 regulated activities (CE:AQA779). Registered in Hong Kong under the Companies Ordinance (Chapter 622), No. 1173058.

 

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Related Insights

24 May 2024

Market Monitor – 24 May 2024

Global stock markets endured a difficult week after investors’ hopes of imminent cuts to interest rates in the United States and Europe were dampened by unexpectedly strong economic data.
Read time - 3 min
21 May 2024

Pauline Grange

Portfolio Manager, Global Equities

Water in crisis – searching for solutions

With too much, too little or too toxic water the world is facing a water crisis. We explore key issues and challenges before highlighting some of the companies promoting better water management.
Read time - 3 min
17 May 2024

Market Monitor – 17 May 2024

Global stock markets extended their May gains this week, with a welcome slowdown in inflation in the United States laying the groundwork for interest rate cuts.
Read time - 3 min
24 May 2024

Market Monitor – 24 May 2024

Global stock markets endured a difficult week after investors’ hopes of imminent cuts to interest rates in the United States and Europe were dampened by unexpectedly strong economic data.
Read time - 3 min
22 May 2024

Joanna Tano

Head of Research, Europe, Real Estate (EMEA)

UK Real estate – Overview Q1 2024

Total returns for the UK commercial property market turned positive in Q1 2024.
Read time - 3 min
21 May 2024

Pauline Grange

Portfolio Manager, Global Equities

Water in crisis – searching for solutions

With too much, too little or too toxic water the world is facing a water crisis. We explore key issues and challenges before highlighting some of the companies promoting better water management.
Read time - 3 min
true
true

Important information

For marketing purposes.

This document is intended for informational purposes only and should not be considered representative of any particular investment. This should not be considered an offer or solicitation to buy or sell any securities or other financial instruments, or to provide investment advice or services. Investing involves risk including the risk of loss of principal. Your capital is at risk. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The value of investments is not guaranteed, and therefore an investor may not get back the amount invested. International investing involves certain risks and volatility due to potential political, economic or currency fluctuations and different financial and accounting standards. The securities included herein are for illustrative purposes only, subject to change and should not be construed as a recommendation to buy or sell. Securities discussed may or may not prove profitable. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Threadneedle Investments (Columbia Threadneedle) associates or affiliates. Actual investments or investment decisions made by Columbia Threadneedle and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. This document and its contents have not been reviewed by any regulatory authority.

 

In the UK: Issued by Threadneedle Asset Management Limited, registered in England and Wales, No. 573204. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated in the UK by the Financial Conduct Authority.

 

In Australia: Issued by Threadneedle Investments Singapore (Pte.) Limited [“TIS”], ARBN 600 027 414.  TIS is exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) and relies on Class Order 03/1102 in respect of the financial services it provides to wholesale clients in Australia. This document should only be distributed in Australia to “wholesale clients” as defined in Section 761G of the Corporations Act. TIS is regulated in Singapore (Registration number: 201101559W) by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289), which differ from Australian laws.

 

In Singapore: Issued by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore 239519, which is regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). Registration number: 201101559W. This advertisement has not been reviewed by the Monetary Authority of Singapore.

 

In Hong Kong: Issued by Threadneedle Portfolio Services Hong Kong Limited 天利投資管理香港有限公司. Unit 3004, Two Exchange Square, 8 Connaught Place, Hong Kong, which is licensed by the Securities and Futures Commission (“SFC”) to conduct Type 1 regulated activities (CE:AQA779). Registered in Hong Kong under the Companies Ordinance (Chapter 622), No. 1173058.

 

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Awards

Columbia Threadneedle Investments has received accolades across a wide range of sectors and funds, demonstrating the breadth of our investment expertise.

Contact

For more information about Columbia Threadneedle Investments or our products please contact us.