Market Monitor – 10 November 2023
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Market Monitor – 10 November 2023

Global stock markets enjoyed a largely positive week, although optimism was tempered on Thursday by concerns that continued strength in the American labour market could force the Federal Reserve to tighten monetary policy further

Fed Chair Jerome Powell warned in a speech on Wednesday that the future path of inflation – in both the US and Europe – remained very difficult to predict. Powell’s remarks came as a warning to investors on both sides of the Atlantic, who are increasingly expecting slowing price rises to lead to cuts in interest rates in 2024. While slowing global growth and a dip in oil prices from recent highs are helping to reduce inflationary pressures, recent data showing a lower-than-expected number of new unemployment claims in the US reminded markets that further efforts may be needed to tame inflation in the world’s largest economy.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.5% down for the week so far, with the S&P 500 falling back by 0.3%. Until Thursday’s negative session, stocks in the US had been enjoying their longest winning streak for more than two years, with shares in technology companies in particular advancing as interest rate fears receded. Solid third-quarter earnings reports from some major consumer-facing businesses also helped to boost investor sentiment.

UK

In the UK, the FTSE 100 closed on Thursday 0.5% up for the week so far, with share prices in London managing to eke out gains despite falls in oil and other commodity prices and further signs of deterioration in the British economy. The week started brightly with the Bank of England’s chief economist saying interest rate cuts were possible at some point in 2024, perhaps as early as summer, while UK car sales continue to show considerable resilience. However, data also showed a dip in retail sales overall in October, while separate figures indicated a sharp rise in the number of mortgage borrowers – landlords in particular – falling into arrears on their repayments.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.1% for the week, while France’s CAC 40 gained 0.9%. Weakening economic data across the eurozone added weight to the idea that the European Central Bank will make no further attempts to tighten monetary policy in the current cycle. However, the outlook for European businesses is becoming bleaker, with Germany reporting further downturns in construction and manufacturing alongside retail sales dipping across the region.

Asia

In Asia, the Hang Seng index in Hong Kong fell 0.9% as fresh signs of weakness in the Chinese economy dominated sentiment. Figures published on Tuesday showed that exports from China had fallen for the sixth consecutive month in October, while data issued on Thursday showed that prices across the country had fallen by 0.2% last month, despite the government’s recent stimulus efforts. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 2.2% after research showed an increase in confidence in the manufacturing sector. Stocks in Tokyo were also lifted by strong third-quarter trading reports from a number of major firms.

3 November
9 November
Change (%)
FTSE 100
7417.7
7455.7
0.5
FTSE 250
17983.8
18037.9
0.3
S&P 500
4358.3
4347.0
-0.3
Dow Jones
34061.3
33891.0
-0.5
DAX
15189.3
15352.5
1.1
CAC 40
7047.5
7113.7
0.9
ACWI
662.8
662.4
-0.1
Hong Kong Hang Seng
17664.1
17511.3
-0.9
Nikkei 225
31949.9
32646.5
2.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 9 November 2023.

10 November 2023
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Market Monitor – 10 November 2023

Important information

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

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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