Market Monitor – 14 June 2024
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Market Monitor – 14 June 2024

Global share prices endured a difficult week following news of another snap election in Europe and fears of further delays to interest rate cuts in the United States.

Stock markets began the week on the back foot after the surprise announcement by President Macron of France that he intends to bring forward the country’s parliamentary elections. This followed the success of French right-wing parties in last Sunday’s European poll. Investors are concerned that Macron’s gamble could result in a legislative deadlock at a time when France is facing a substantial fiscal deficit.

News of further falls in inflation in the US was welcomed, but the Federal Reserve kept rates unchanged – as widely expected – at its June meeting on Wednesday. Economic data in the US remains mixed, with recent rises in job numbers providing policymakers with fresh evidence that inflationary pressures could persist.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.4% down for the week so far, although the S&P 500 gained 1.6%. Technology stocks were the one bright spot, with share prices boosted by the news that one of the world’s largest electronics companies was planning to incorporate artificial intelligence in its products. Both the S&P 500 and the tech-heavy Nasdaq index rose to all-time highs as a result. However, downbeat comments from Fed chair, Jerome Powell, tempered investors’ expectations of interest rate cuts, with markets now forecasting just a single reduction in 2024.

UK

In the UK, the FTSE 100 closed on Thursday 1% down for the week so far after data showed the economy had stagnated in April – news that appears unlikely to boost the election hopes of the incumbent Conservative party. An investment bank report published on Monday suggested that the expected Labour victory on 4 July could be a positive for UK markets. The report said the party’s cautious but pro-growth approach may be able to help reverse the capital outflows of the past two decades.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 1.6% for the week, while France’s CAC 40 slumped 3.7% as political turmoil rocked markets. Investors were primarily worried about the uncertainty that the surprise elections in France could create – not just in the run-up to the polls, but also in the event of any power-sharing compromises that could ensue. Markets were already mildly concerned about France’s growing deficit and signs of difficulties in its economy.

Asia

In Asia, the Hang Seng index in Hong Kong fell 1.4% after disappointing inflation data weighed on investor sentiment. The rate of consumer price rises was unchanged last month while producer price inflation fell, highlighting the ongoing weakness in China’s economy. There was further bad news in the shape of proposed tariffs on imports of Chinese electric vehicles into the European Union. Japan’s Nikkei 225 index of leading shares, meanwhile, edged 0.1% ahead after the country’s first-quarter GDP growth was revised upwards. However, investors were mainly focused on whether Friday’s monetary policy decision from the Bank of Japan would provide any clues about the likely trajectory of interest rate rises in the second half of the year.

June 7
June 13
Change (%)
FTSE 100
8245.4
8163.7
-1.0
FTSE 250
20555.4
20196.0
-1.7
S&P 500
5347.0
5433.7
1.6
Dow Jones
38799.0
38647.1
-0.4
DAX
18557.3
18265.7
-1.6
CAC 40
8001.8
7708.0
-3.7
ACWI
794.2
799.7
0.7
Hong Kong Hang Seng
18367.0
18112.6
-1.4
Nikkei 225
38683.9
38720.5
0.1

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 13 June 2024.

14 June 2024
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Market Monitor – 14 June 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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