Market Monitor – 1 March 2024
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Market Monitor – 1 March 2024

Global stock markets this week consolidated recent gains to round off a positive month as hopes of imminent interest rate cuts grow.

Investors breathed a sigh of relief on Thursday when latest data from the United States showed a fall in personal consumer expenditures (PCE) inflation to its lowest level in almost three years. The PCE figure is seen as the Federal Reserve’s preferred measure of price rises, and this latest decline raises the likelihood of rate cuts in the first half of the year.

Falls in the price of oil should also help reduce inflationary pressures. Crude values declined this week after the US government increased its supplies to the global market, and hopes rose that a ceasefire could soon be agreed in Gaza.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.3% down for the week so far, although the S&P 500 gained 0.1% to reach another record high. There are increasing signs that the American economy is starting to feel the impact of tight monetary policy, with recent data indicating a fall in consumer confidence and durable goods orders, as well as a rise in unemployment claims. Such issues will put pressure on the Fed to reduce rates, and the market now expects the first cut to come in June.

UK

In the UK, the FTSE 100 closed on Thursday 1% up for the week so far after declining oil prices hit the share prices of London’s major energy companies. There was also weakness among construction firms after regulators announced a probe of pricing and standards in Britain’s housebuilding sector. However, latest figures showed that mortgage approvals had risen to levels not seen since Liz Truss’s disastrous mini-Budget in September 2022, while analysts predict a 10% increase in residential property sales this year.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.5% for the week, while France’s CAC 40 declined 0.5%. Rising consumer confidence in Germany helped the DAX to hit a record high, while news that the country’s inflation rate had fallen to 2.7% in February also lifted sentiment. A senior policymaker at the European Central Bank said that, given the current economic outlook in the eurozone, interest rate cuts were possible in the first half of 2024. In France, however, recent figures show a decline in consumer morale.

Asia

In Asia, the Hang Seng index in Hong Kong fell 1.3% after the spotlight turned to another struggling real estate giant. News of the potential liquidation of one of China’s biggest property firms has again raised fears of contagion and the possible impact on the country’s wider financial system. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.2% to reach a new high. Weakness in the yen in recent months has helped Japan’s multinationals generate record profits, while there are also signs that the country’s inflation rate is easing further as retail sales slow.

 

February 23
February 29
Change (%)
FTSE 100
7706.3
7630.0
-1.0
FTSE 250
19179.6
19054.9
-0.7
S&P 500
5088.8
5096.3
0.1
Dow Jones
39131.5
38996.4
-0.3
DAX
17419.3
17678.2
1.5
CAC 40
7966.7
7927.4
-0.5
ACWI
761.2
761.3
0.0
Hong Kong Hang Seng
16725.9
16511.4
-1.3
Nikkei 225
39098.7
39166.2
0.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 29 February 2024.

1 March 2024
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Market Monitor – 1 March 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 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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