Market Monitor – 26 January 2024
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Market Monitor – 26 January 2024

Global stock markets have shaken off their January blues this week and made solid gains, as investors welcomed positive economic data and upbeat company earnings reports.

Indexes on both sides of the Atlantic hit record highs, boosted by continued optimism around the potential for artificial intelligence (AI) to drive growth in the technology sector, as well as news that the Chinese government was planning further stimulus measures. However, the picture was not entirely positive with research showing the impact of hostilities in the Middle East on international supply chains, and oil prices rose again – potentially adding to inflationary pressures.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.5% up for the week so far, with the S&P 500 gaining 1.1% to reach an all-time high. Technology stocks extended last week’s AI-fuelled gains, while company earnings reports for the final three months of 2023 have so far largely come in ahead of analysts’ expectations. Figures published on Thursday showed that the economy grew more quickly than predicted in the fourth quarter, while consumer spending remained resilient. With inflation now seemingly under control, hopes are high that a soft landing from the recent period of monetary tightening is a genuine possibility.

UK

In the UK, the FTSE 100 closed on Thursday 0.9% up for the week so far. News of fresh stimulus measures in China and concerns about global trade led to rises in oil prices and consequent gains among Britain’s major energy companies. On the other hand, economic data was mixed: on the negative side, there were signs the economy may have shrunk in the fourth quarter of 2023, warnings of a rise in company insolvencies and further declines in retail sales. However, separate research highlighted further expansion in the services sector, while banks continue to cut mortgage rates.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 2.1% for the week at a new high, while France’s CAC 40 gained 1.3%. As expected, the European Central Bank left interest rates unchanged at its meeting on Thursday, with President Christine Lagarde repeating that talk of rate cuts is premature. However, ECB data showed that inflation expectations among businesses and consumers continues to fall. Combined with the possibility of the eurozone falling into recession, policymakers may decide to loosen monetary policy sooner rather than later. Separately, data from Germany showed the impact of disruption in Red Sea shipping routes on the country’s chemicals industry. Several major European logistics firms are now re-rerouting supply chains to avoid the region.

Asia

In Asia, the Hang Seng index in Hong Kong surged 5.9% after authorities in Beijing announced a huge stimulus package aimed at shoring up China’s stock markets. Share prices also rose in response to the news that the founders of a major technology company planned to purchase a chunk of its shares, while investors welcomed the news that regulators were cutting bank capital requirements in a bid to boost lending. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.8%. The Bank of Japan maintained its current policy of negative interest rates as widely forecasted, but markets increasingly expect some form of monetary tightening in the months ahead.

January 19
January 25
Change (%)
FTSE 100
7461.9
7529.7
0.9
FTSE 250
18871.4
19223.1
1.9
S&P 500
4839.8
4894.2
1.1
Dow Jones
37863.8
38049.1
0.5
DAX
16555.1
16906.9
2.1
CAC 40
7371.6
7464.2
1.3
ACWI
724.3
733.2
1.2
Hong Kong Hang Seng
15308.7
16212.0
5.9
Nikkei 225
35963.3
36236.5
0.8

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 25 January 2024.

26 January 2024
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Market Monitor – 26 January 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.

 

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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