Market Monitor – 13 October 2023
Insights

Market Monitor – 13 October 2023

Global stock markets had a positive week despite the escalating conflict in the Middle East and recent data highlighting sticky inflation in the United States

Last weekend’s attacks in Israel caused falls in share prices at the start of the week as oil prices surged again and investors worried about the impact of yet another geopolitical crisis. However, concerns about the potential repercussions for financial markets ebbed as the week progressed. There was welcome news on Tuesday as US Federal Reserve officials said that recent rises in bond yields – and their consequent dampening of economic activity – may mean there is less of a need for policymakers to increase interest rates in the months ahead. But the news on Thursday that US inflation remained unchanged in September at an annualised rate of 3.7% led to further nervousness.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.7% up for the week so far, with the S&P 500 advancing 1%. Latest research showed a fresh fall in small business confidence, while data indicated that factory gate prices had risen in September. Despite the Fed’s dovish comments earlier in the week, bond yields rose on Thursday following an unsuccessful auction of US Treasury bills, which suggested American financial markets are still expecting further rate hikes in the near term.

UK

In the UK, the FTSE 100 closed on Thursday 2% up for the week so far, with the rise in oil prices providing a boost to major energy firms. Mining stocks also gained on speculation that the Chinese government may be planning further stimulus measures. Official data indicated that the British economy had expanded fractionally in August, but many analysts nonetheless expect the country to fall into recession in the months ahead. Updated forecasts from the International Monetary Fund predicted the UK would be the weakest of the G7 economies in 2024.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.3% for the week, while France’s CAC 40 gained 0.6%. Sentiment was boosted by rising hopes that the European Central Bank was on the verge of bringing its programme of monetary tightening to an end. However, luxury goods stocks slipped back in the wake of a downbeat trading statement from one of the sector’s biggest names. Gas prices across Europe surged following news of the Hamas attacks in Israel as well as reports that damage to a major supply pipeline in the Baltic Sea may have been a result of sabotage.

Asia

In Asia, the Hang Seng index in Hong Kong surged 4.3% as speculation grew that Chinese authorities were planning another multi-billion dollar injection of stimulus cash to kick-start the country’s economy. Investors appeared to have already priced in the news that a major property developer was set to default on a significant chunk of its debt. Meanwhile, Japan’s Nikkei 225 index of leading shares advanced 4.8%, buoyed by hopes of rate cuts in the US and signs that domestic inflationary pressures are easing. Semiconductor stocks led the way with strong gains following the news that a major Taiwanese microchip manufacturer plans to expand production facilities in Japan.

6 October
12 October
Change (%)
FTSE 100
7494.6
7644.8
2.0
FTSE 250
17732.3
17835.7
0.6
S&P 500
4308.5
4349.6
1.0
Dow Jones
33407.6
33631.1
0.7
DAX
15229.8
15425.0
1.3
CAC 40
7060.2
7104.5
0.6
ACWI
654.0
663.3
1.4
Hong Kong Hang Seng
17486.0
18238.2
4.3
Nikkei 225
30994.7
32494.7
4.8

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 12 October 2023.

13 October 2023
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 – 13 October 2023

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

12 July 2024

Market Monitor – 12 July 2024

Global stock markets made further gains this week after weaker economic data in the United States raised the likelihood of an interest rates cut later in the summer.
Read time - 3 min
5 July 2024

Market Monitor – 5 July 2024

Global stock markets surged ahead this week as the prospect of an interest rate cut in the United States grows ever closer.
Read time - 3 min
28 June 2024

Market Monitor – 28 June 2024

Global stock markets had a mixed week as investors wait for vital inflation data in the United States and the results of national elections in Europe.
Read time - 3 min
12 July 2024

Market Monitor – 12 July 2024

Global stock markets made further gains this week after weaker economic data in the United States raised the likelihood of an interest rates cut later in the summer.
Read time - 3 min
9 July 2024

Laura Reardon

Client Portfolio Manager, Emerging Market Debt

Dispelling the myths around emerging market debt

Emerging markets today bear little resemblance to those rocked by financial crises in the 1980s and 1990s, with the asset class diversified across geography, investment grade, high yield, sovereigns and corporates
Read time - 3 min
9 July 2024

Fixed Income Desk

In Credit - Weekly Snapshot

In Credit Weekly Snapshot – July 2024

Our fixed income team provide their weekly snapshot of market events.
Read time - 5 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.