Market Monitor – 22 December 2023
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Market Monitor – 22 December 2023

Despite a couple of wobbles, share prices around the world managed to hold on to their recent gains this week.

Global markets appear on course to enter 2024 in a positive frame of mind thanks to enduring optimism around the likelihood of interest rate cuts over the next 12 months.

Monday’s session was volatile following comments at the end of last week from a policymaker at the US Federal Reserve. These suggested that the pace of monetary loosening might not be as rapid as investors had hoped. At the same time, news of attacks on commercial shipping in the Red Sea pushed oil prices higher. By the end of trading on Thursday, however, markets were back in a positive mood after data showed a surprisingly large fall in UK inflation, while crude prices edged back after reports of policy disagreements among OPEC members.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.3% up for the week so far, with the S&P 500 gaining 0.6%. Both indexes managed to build on last week’s strong performance, with the Dow hitting another all-time high and the S&P 500 coming within a whisker of its record close on Tuesday as technology stocks surged and research showed a rise in confidence in the construction sector. Wednesday’s session saw a sharp retreat as investors took profits, before the upward trend returned on Thursday, aided by a lower-than-expected number of unemployment claims.

UK

In the UK, the FTSE 100 closed on Thursday 1.6% up for the week so far with stocks in London enjoying a period of outperformance – something that has been relatively rare in 2023. News that the Consumer Prices Index in Britain had fallen to 3.9% in November, considerably lower than analysts had expected, provided a significant boost and raised the prospect of interest rate cuts early in 2024. Markets now expect the Bank of England to trim the base rate at least once in the first quarter. On the downside, economic data continued to disappoint, with weakening sales in the retail sector adding to the gloomy outlook.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 0.4% for the week, while France’s CAC 40 lost 0.3%. With a lack of economic data or European Central Bank news, investors in Europe had little to get excited about – and it now seems possible that interest rates could fall in the UK before they do in the eurozone. Research suggested German retailers, like their British counterparts, are finding trading conditions particularly tough, while there were sharp share price falls in real estate and automotive companies during the week.

Asia

In Asia, the Hang Seng index in Hong Kong dipped 1% after policymakers in Beijing decided against cutting interest rates on Tuesday. Investors had been hoping for further stimulus to help the Chinese economy recover from its ongoing slump. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.5% after the Bank of Japan indicated that the country’s low-interest rate regime could remain in place for longer than markets had expected. The news led to falls in the yen, providing a boost for the share prices of Tokyo’s numerous multinationals.

December 15
December 21
Change (%)
FTSE 100
7576.4
7694.7
1.6
FTSE 250
19209.0
19571.0
1.9
S&P 500
4719.2
4746.8
0.6
Dow Jones
37305.2
37404.4
0.3
DAX
16751.4
16687.4
-0.4
CAC 40
7596.9
7571.4
-0.3
ACWI
716.5
720.5
0.6
Hong Kong Hang Seng
16792.2
16621.1
-1.0
Nikkei 225
32970.6
33140.5
0.5

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 21 December 2023.

22 December 2023
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Market Monitor – 22 December 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.

 

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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.

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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.

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