Market Monitor – 5 April 2024
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Market Monitor – 5 April 2024

Global stock markets have had a difficult week following the Easter break, with conflicting economic data and further rises in commodity prices creating uncertainty for investors.

Share prices have eased off their recent highs with signs that central bankers may delay this year’s widely expected interest rate cuts.

In the United States, stronger-than-expected manufacturing data published on Monday was followed on Wednesday by reports of a surprisingly large rise in new jobs last month. This led Federal Reserve chair, Jerome Powell, to warn markets that cuts were not yet in sight. Powell and his counterpart at the European Central Bank (ECB), Christine Lagarde, this week took the unusual step of asking major technology companies to exercise restraint in pricing their services in order to keep inflationary pressures in check. However, both the Fed and the ECB will have been disappointed to see further increases in oil and commodity prices following renewed tensions in the Middle East and improving industrial data from China.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 3% down for the week so far, with the S&P 500 falling 2%. Signs of ongoing resilience in the US employment market – and the potential for rising wages to drive inflation – have preoccupied investors and central bankers, with a number of Fed officials making cautious comments as a result. Underwhelming trading figures from a major electric vehicle manufacturer also weighed on sentiment, with the company reporting a significant impact caused by recent disruption to Middle East shipping routes.

UK

In the UK, the FTSE 100 closed on Thursday 0.3% up for the week so far after figures published on Thursday showed continued expansion in Britain’s services sector. The data raised hopes that the UK’s recession could be short-lived, but the Bank of England may be concerned by signs of rising input costs and wages among services firms. London’s mining companies, meanwhile, benefited from rising metal prices while car sales in Britain were reported to have reached their highest level since 2019. However, disappointing property price data highlighted the fact that a full recovery in the housing sector remains some way off.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 0.5% for the week, while France’s CAC 40 fell 0.7%. Both indexes have slipped back from recent record highs. News on Wednesday that inflation in the eurozone is easing more quickly than expected raised hopes that the ECB might cut interest rates at its next meeting. But these were dampened to some extent by the news on Thursday that growth in the bloc’s services and manufacturing sectors was showing surprising signs of resilience.

Asia

In Asia, the Hang Seng index in Hong Kong gained 1.1% after latest figures indicated a return to growth for China’s manufacturing sector. February’s rise in output represents the first month of expansion in almost a year. Tokyo’s Nikkei 225 index of leading shares fell 1.5% after Tuesday’s earthquake in Taiwan raised fears that Japan could be hit by a tsunami. The disaster also prompted concerns among Japanese investors about the knock-on effects of disruption in the Taiwanese semiconductor industry.

March 29
April 4
Change (%)
FTSE 100
7952.6
7975.9
0.3
FTSE 250
19884.7
19873.2
-0.1
S&P 500
5254.4
5147.2
-2.0
Dow Jones
39807.4
38597.0
-3.0
DAX
18492.5
18402.4
-0.5
CAC 40
8205.8
8151.6
-0.7
ACWI
783.6
773.4
-1.3
Hong Kong Hang Seng
16541.4
16725.1
1.1
Nikkei 225
40369.4
39773.1
-1.5

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 4 April 2024.

5 April 2024
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Market Monitor – 5 April 2024

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.

 

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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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