Market Monitor – 29 September 2023
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Market Monitor – 29 September 2023

Global stock markets suffered further losses this week, and September looks set to be one of the weakest performing months of 2023

Share prices continued to be held back by concerns about high interest rates and the outlook for global growth given China’s lacklustre post-pandemic recovery. In the past few weeks, these issues have been compounded by rising oil prices and, more recently, the prospect of a United States government shutdown.

At the close of trading on Thursday, lawmakers in Congress appeared some distance away from reaching an agreement that would allow US state spending to continue past the start of October. A shutdown is expected to harm America’s credit rating and could have a negative impact on financial markets.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.9% down for the week so far, with the S&P 500 falling 0.5%. Worries that the Federal Reserve could raise interest rates again before the end of the year sent bond yields higher at the start of the week. However, softer economic data – including a fall in new home sales and an increase in unemployment claims – helped to calm investors’ nerves on Wednesday and Thursday. An antitrust probe into one of the country’s biggest online retailers hit sentiment in the technology sector, and markets remained uncertain as to what ramifications a government shutdown was likely to have.

UK

In the UK, the FTSE 100 closed on Thursday 1.1% down for the week so far. Continuing fears for China’s growth outlook hit the price of mining stocks, with demand for precious metals and other commodities likely to be lower than previously expected in the months ahead. Analysts warned that the UK’s economic growth is set to underperform in 2023 and 2024, while data published on Monday showed a drop in retail sales for August following a similar fall in July. Energy companies were one bright spot this week, with oil prices remaining strong and the British government giving the green light to a North Sea gas extraction project.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 1.5% for the week, while France’s CAC 40 lost 1%. European shares were hit by concerns about interest rates in the US and growth in China, while European Central Bank president, Christine Lagarde, warned of ongoing weakness in the eurozone economy. However, Thursday ended on a relatively positive note as latest data showed that the rate of inflation in Germany had receded to its lowest level since Russia’s invasion of Ukraine in February 2022.

Asia

In Asia, the Hang Seng index in Hong Kong slumped 3.8% as the turmoil in China’s real estate sector continued. Trading in the shares of one of the country’s biggest property companies was suspended late in the week after the firm – which is currently under investigation by Chinese authorities – was unable to reach an agreement on refinancing part of its debt. Industrial profits among Chinese firms fell in August, albeit more slowly than in previous months. Japan’s Nikkei 225 index of leading shares, meanwhile, fell 1.6% as investors reacted nervously to news that the Bank of Japan was unsure of when it would end its current negative interest rate policy.

22 September
28 September
Change (%)
FTSE 100
7683.9
7601.9
-1.1
FTSE 250
18606.8
18098.7
-2.7
S&P 500
4320.1
4299.7
-0.5
Dow Jones
33963.8
33666.3
-0.9
DAX
15557.3
15323.5
-1.5
CAC 40
7184.8
7116.2
-1.0
ACWI
663.1
656.7
-1.0
Hong Kong Hang Seng
18057.5
17373.0
-3.8
Nikkei 225
32402.4
31872.5
-1.6

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 28 September 2023.

29 September 2023
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Market Monitor – 29 September 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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