Market Monitor – 31 March 2023
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Market Monitor – 31 March 2023

Global stock markets have made a strong recovery from the banking sector jitters that caused steep share-price falls at the end of last week.

Friday’s sell-off was sparked by concerns that the failure of Credit Suisse earlier in the month could have serious ramifications for major eurozone banks, with German institutions in particular thought to be facing renewed pressure. However, those fears appeared to have eased over the weekend and given the lack of further bad news, financial stocks across Europe have managed to bounce back.
Share prices around the world have also been helped by the news that a major Chinese technology corporation, with a dual listing in Hong Kong and New York, is planning to split its operations into six new business units. Investors welcomed the move as it is likely to create more value for shareholders. It also shows that the Beijing government may be relaxing its tough regulatory stance on the country’s technology sector.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.9% up for the week so far, with the S&P 500 advancing 2.0%. The gains were underpinned by strong technology stock performance, with the tech-heavy Nasdaq index entering bull market territory after a turbulent 2022. Meanwhile, investors remain unsure about the course of action the Federal Reserve is likely to take at its next meeting in early May. New data revealed that consumer confidence has remained resilient in the US, although this week’s rise in jobless claims could give the Fed a reason to pause its recent run of interest rate hikes.

UK

In the UK, the FTSE 100 closed on Thursday 2.9% up for the week so far, with shares in London buoyed by receding fears of a full-blown financial crisis as well as a rise in commodity prices. Bank of England Governor, Andrew Bailey, helped to calm nerves by stressing that the UK’s financial system remains robust, but warned that some of the regulatory framework introduced in the wake of the global financial crisis in 2008 was in danger of becoming outdated. New data indicated that confidence among UK firms is growing following a difficult winter, although high interest rates saw mortgage lending in Britain fall to its lowest level since 2016 in February.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 3.8% for the week, while France’s CAC 40 gained 3.5% as European markets returned to levels not seen since the recent banking crisis began at the start of March. Investors welcomed the news that inflation in Spain had fallen sharply after rising at the start of the year. Similarly, the rate of price increases in Germany has slowed, but not as quickly as analysts expected.

Asia

In Asia, the Hang Seng index in Hong Kong rose 2.0% as investors reacted positively to reports that one of the index’s leading technology firms is to be restructured. Gains in China were limited to some extent by the news that Taiwan’s leader is to meet senior American politicians during a visit to the US- a development that has been condemned by Beijing. Japan’s Nikkei 225 index of leading shares advanced 1.5%, with rises in banking and technology stocks in Tokyo matching gains elsewhere in the world.
24 March
30 March
Change (%)
FTSE 100
7405.5
7620.4
2.9
FTSE 250
18493.8
18907.7
2.2
S&P 500
3971.0
4050.8
2.0
Dow Jones
32237.5
32859.0
1.9
DAX
14957.2
15522.4
3.8
CAC 40
7015.1
7263.4
3.5
ACWI
625.1
639.9
2.4
Hong Kong Hang Seng
19915.7
20309.13
2.0
Nikkei 225
27385.3
27782.9
1.5

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 30 March 2023.

3 April 2023
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Market Monitor – 31 March 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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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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