Market Monitor – 24 November 2023
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Market Monitor – 24 November 2023

Global stock markets held on to their recent gains during what by recent standards has been a relatively uneventful week

There has been little in the way of economic surprises or central bank comments to disabuse investors of the notion that interest rates will soon fall. However, there is still some nervousness around the possibility of a fresh spike in oil prices, with reports suggesting OPEC could implement another round of production cuts before the end of the year. News towards the end of the week of a ceasefire in the conflict between Israel and Hamas helped allay fears of an escalating crisis in the Middle East.

United States

On Wall Street, the Dow Jones Industrial Average ended trading ahead of Thursday’s Thanksgiving Day closure 0.9% up for the week so far, a gain that was matched by the S&P 500. Minutes from the recent Federal Reserve meeting indicated further rate hikes remain unlikely, particularly in light of weakening economic data as home sales decline and business activity cools. Technology stocks reacted negatively to news that a major semiconductor company was facing a fall in sales in the Chinese market due to recently introduced restrictions on the use of foreign-made microchips.

UK

In the UK, the FTSE 100 closed on Thursday 0.3% down for the week so far after Bank of England governor Andrew Bailey warned that stock markets around the world were downplaying the ongoing risks associated with inflation. Business activity reportedly grew in the UK in November, but there were further signs of a slowdown with factory order books weakening and another profit warning in the retail sector. Chancellor Jeremy Hunt’s Autumn Statement on Wednesday proved to be significantly less controversial than the 2022 edition, with markets reacting calmly to news of minor tax cuts for businesses.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.5% for the week, while France’s CAC 40 gained 0.6%. Minutes from the European Central Bank’s most recent meeting suggest policymakers think inflation is coming under control more quickly than expected, although it also warned of rising stress levels in the financial sector as customer defaults rise. The German economy has reportedly contracted less severely than expected in November, but business activity across the eurozone has fallen for a sixth consecutive month.

Asia

In Asia, the Hang Seng index in Hong Kong gained 2.6% after the Chinese government indicated it would provide further support for developers in the country’s stricken real estate sector. This news helped calm nerves after central bankers in China decided to leave interest rates unchanged, and a major asset management company warned it was facing financial difficulties due to its links to property firms. Japan’s Nikkei 225 index of leading shares fell 0.4%, meanwhile, having reached a 33-year high at the start of the week. Stocks fell back as investors took profits, while signs of a domestic slowdown and concerns about the semiconductor sector also hit sentiment.

17 November
23 November
Change (%)
FTSE 100
7504.3
7483.6
-0.3
FTSE 250
18567.9
18480.8
-0.5
S&P 500
4514.0
4556.6
0.9
Dow Jones
34947.3
35273.0
0.9
DAX
15919.2
15994.7
0.5
CAC 40
7233.9
7277.9
0.6
ACWI
685.7
691.3
0.8
Hong Kong Hang Seng
17454.2
17910.8
2.6
Nikkei 225
33585.2
33451.8
-0.4

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 23 November 2023.

24 November 2023
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Market Monitor – 24 November 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 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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