Market Monitor – 19 November 2021

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Market Monitor – 19 November 2021

Global stock markets have had a mixed week with concerns about rising inflation and increasing Covid-19 infection levels putting a brake on gains. Falls in the price of oil and other commodities have also had a short-term impact on shares in energy and mining companies – although cheaper crude costs could be good news for major economies in the months ahead.
Governments in both the United States and China have this week taken steps to release stocks from their strategic oil reserves in a bid to dampen down prices and ease inflationary pressures. While these moves have been effective so far, they are a sign of how seriously general price rises are being taken by policymakers as demand surges in the wake of the pandemic.

The US

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 gaining 0.5% – the difference in fortunes can be explained by the fact the Dow has a greater proportion of traditional stocks such as oil companies and miners.
The S&P was also helped by a rebound in Tesla shares following last week’s slump. Exercise equipment firm Peloton also performed well, with investors taking the view that recent falls have made the company’s shares good value.

The UK & Europe

In the UK, the FTSE 100 closed on Thursday 1.3% down for the week, with the index hit hard by falling crude prices: both Shell and BP were among the week’s biggest losers. The former company announced plans on Monday to move its tax residence to the UK from the Netherlands and end its dual listing in Amsterdam and London. Meanwhile, solid earnings reports from Vodafone and Land Securities saw shares in both businesses rally.
UK inflation data on Wednesday showed that prices in Britain were rising at their fastest rate in a decade: analysts now firmly expect the Bank of England to raise interest rates when its Monetary Policy Committee meets next month. With data from the Office for National Statistics showing an increasingly healthy jobs market, there appears to be more scope for the Bank to tighten monetary policy.

In Frankfurt, the DAX index ended Thursday’s session up 0.8% for the week, while France’s CAC 40 gained 0.7%. Investors in the eurozone were reassured by the latest comments from European Central Bank governor Christine Lagarde suggesting that an increase in interest rates remains some way off.

 

However, there is growing cause for concern about sharply rising Covid-19 rates in Germany, while several European Union member states have started to impose tougher restrictions, on unvaccinated people in particular.

Asia

In Asia, both the Hang Seng index in Hong Kong and Japan’s Nikkei 225 index of leading shares finished level for the week at the end of Thursday’s session. Investors in China remain nervous about the state of the country’s property sector, with falls in sales and construction levels reported this week. Japan’s economy shrank more quickly than expected between July and September, while the country’s export growth fell to an eight-month low in October.
November 12
November 18
Change (%)
FTSE 100
7347.9
7256.0
-1.3
FTSE All-share
4194.6
4152.8
-1.0
S&P 500
4682.9
4704.5
0.5
Dow Jones
36100.3
35871.0
-0.6
DAX
16094.1
16221.7
0.8
CAC 40
7091.4
7142.0
0.7
ACWI
756.8
756.4
-0.1
Hong Kong Hang Seng
25328.0
25319.7
0.0
Nikkei 225
29610.0
29598.7
0.0

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 18/11/2021.

19 November 2021
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Market Monitor – 19 November 2021

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 and relies on Class Order 03/1102 in marketing and providing financial services to Australian wholesale clients as defined in Section 761G of the Corporations Act 2001. 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 and relies on Class Order 03/1102 in marketing and providing financial services to Australian wholesale clients as defined in Section 761G of the Corporations Act 2001. 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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