Market Monitor – 23 June 2023
Insights

Market Monitor – 23 June 2023

A lack of positive news has resulted in widespread decline on global stock markets this week, with concerns about slowing growth and the possibility of further interest rate rises to the fore

The Chinese government’s ongoing attempt to stimulate the country’s economy received a lukewarm response from investors, while signs that central bank action in the UK has done little to slow inflation also prompted concerns. Indicators in the United States, however, suggest tighter monetary policy is starting to weigh on American economic activity – fuelling hopes that the Federal Reserve may be on the verge of bringing its interest rate-raising programme to an end.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1% down for the week so far, with the S&P 500 falling 0.6%. The latest increase in US unemployment claims further demonstrated that higher interest rates are having their intended effect. While Fed chair Jerome Powell told Congress this week that he and his colleagues were prepared to continue raising rates, he said their decisions would be “guided by the data” – a statement that was interpreted in a positive light by investors given recent signs of economic cooling.

UK

In the UK, the FTSE 100 closed on Thursday 1.8% down for the week so far, with the more domestically focused FTSE 250 Index faring considerably worse (-3.7%). Figures published on Wednesday showed that inflation in Britain had unexpectedly remained stuck at 8.7% in May, and 24 hours later the Bank of England duly increased interest rates by 0.5 percentage points. Investors fear these additional rate hikes will drive the UK economy into a full-blown recession. Meanwhile, the recent surge in mortgage rates is expected to have a significant impact on household finances and consumer spending – as well as property-market activity – in the months ahead.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 2.3% for the week, while France’s CAC 40 fell 2.5%. Worries about the impact of further eurozone interest rate rises dominated sentiment, while officials in Germany warned that the country’s recession was likely to be sharper than previously feared. There was some good news, however, in the shape of a rise in consumer confidence across the euro area, as well as signs that factory prices in the bloc’s largest economies have started to fall.

Asia

In Asia, the Hang Seng index in Hong Kong slumped 4.1% after recording its steepest falls in two months at the start of the week. Beijing’s attempts to stimulate the Chinese economy through a new wave of borrowing rate reductions were widely viewed as insufficient to address the recent slowdown. Signs of new political tensions between the US and China, meanwhile, added to the negative atmosphere. Japan’s Nikkei 225 index of leading shares declined 1.3%, with shares in technology firms such as semiconductor manufacturers weakening following their recent strong run as investors took profits.

16 June
22 June
Change (%)
FTSE 100
7642.7
7502.0
-1.8
FTSE 250
19030.9
18328.0
-3.7
S&P 500
4409.6
4381.9
-0.6
Dow Jones
34299.1
33946.7
-1.0
DAX
16357.6
15988.2
-2.3
CAC 40
7388.7
7203.3
-2.5
ACWI
684.9
676.2
-1.3
Hong Kong Hang Seng
20040.4
19218.4
-4.1
Nikkei 225
33706.1
33264.9
-1.3

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 22 June 2023.

23 June 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 – 23 June 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

14 June 2024

Market Monitor – 14 June 2024

Global share prices endured a difficult week following news of another snap election in Europe and fears of further delays to interest rate cuts in the United States.
Read time - 3 min
7 June 2024

Market Monitor – 7 June 2024

Global stock markets had a positive week after central banks on both sides of the Atlantic made long-awaited cuts to interest rates.
Read time - 3 min
31 May 2024

Market Monitor – 31 May 2024

Global stock markets continued to struggle this week as investors’ hopes of an interest rate cut in the United States faded further.
Read time - 3 min
17 June 2024

Ben Rodriguez

Fund Manager, Multi-asset

Christopher Mahon

Head of Dynamic Real Return, Multi-asset

Back to basics: why the time is right for a return to multi-asset

The great reset in bond yields and the prospect of inflation falling further means multi-asset is once again an attractive option for investors seeking a smoother return profile.
Read time - 3 min
14 June 2024

Market Monitor – 14 June 2024

Global share prices endured a difficult week following news of another snap election in Europe and fears of further delays to interest rate cuts in the United States.
Read time - 3 min
14 June 2024

Gene Tannuzzo

Global Head of Fixed Income

Fixed-income outlook: Shifting opportunities for bond investors

In an environment of tighter credit spreads, investors will have to look closely to find relative value.
Read time - 1 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.