Market Monitor – 18 November 2022
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Market Monitor – 18 November 2022

Global stock markets have given up some of their recent gains this week as concerns about slowing growth returned. The optimism that accompanied last week’s decline in the rate of inflation in the US has evaporated to some extent, but major indices remain well above their mid-October lows.

Downbeat economic data and some pessimistic company earnings reports have combined to give investors something of a reality check in the past few days. Even if the pace of interest rate rises does start to slow in the weeks ahead, the potential impact of a global recession may make it difficult for share prices to recover this year’s losses as we head into 2023.

US markets

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.6% down for the week so far, with the S&P 500 losing 1.2% after major retailers warned that the upcoming holiday season could be severely affected by weakening consumer demand. There were encouraging signs that rises in the input prices faced by US factories are starting to slow, although growth in US manufacturing output in October was more sluggish than expected.

Europe

In the UK, the FTSE 100 closed on Thursday 0.4% up for the week. The gloomy economic picture painted by chancellor of the exchequer, Jeremy Hunt, in his Autumn Statement on Thursday prompted sterling to fall slightly against the dollar. However, Hunt’s overall budgetary package was received far more calmly by the currency and bond markets than the fiscal plans proposed by his predecessor Kwasi Kwarteng in late September.

Figures published on Wednesday showed that annual inflation in the UK had risen to 11.1% in October, its highest level in more than 40 years. British food and drink producers called on the government to cut restrictions on trade with the European Union in order to reduce upward pressure on prices, while confidence among UK businesses as a whole has reportedly fallen to its lowest level since the financial crisis.

In Frankfurt, the DAX index ended Thursday’s session up 0.3% for the week, while France’s CAC 40 lost 0.3%. The German market was boosted by strong company earnings figures from one of its biggest industrials businesses, although the European Central Bank repeated its warning that rising energy costs and slowing growth posed a serious threat to financial stability in the eurozone.

Asia

In Asia, the Hang Seng index in Hong Kong rose 4.2% after authorities in Beijing unveiled a raft of measures designed to stabilise China’s struggling property sector. Japan’s Nikkei 225 index of leading shares, meanwhile, fell 1.2% after the unexpected news that the country’s economy had contracted in the third quarter of the year. Reports of problems in global semiconductor supply chains also weighed on the Tokyo market.

11 November
17 November
Change (%)
FTSE 100
7318.0
7346.5
0.4
FTSE All-share
4036.8
4033.9
-0.1
S&P 500
3992.9
3946.6
-1.2
Dow Jones
33747.9
33546.3
-0.6
DAX
14224.9
14266.4
0.3
CAC 40
6594.6
6576.1
-0.3
ACWI
618.7
613.3
-0.9
Hong Kong Hang Seng
17325.7
18045.7
4.2
Nikkei 225
28263.6
27930.6
-1.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 17 November 2022.

21 November 2022
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Market Monitor – 18 November 2022

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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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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