Market Monitor – 26 April 2024
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Market Monitor – 26 April 2024

Global stock markets clawed back some of their recent losses this week following easing tensions in the Middle East and some impressive corporate earnings statements.

However, gains were limited by the publication of data on Thursday from the United States indicating a slowdown of growth and persistent inflationary pressures. The threat of “stagflation” in the US has investors worried that interest rates may need to be maintained at their current high levels for longer, causing further damage to the American economy. Elsewhere, equity markets in the UK and China were the week’s top performers, having lagged behind their regional and global counterparts for much of the past 12 months.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.3% up for the week so far, with the S&P 500 gaining 1.6%. It has been a week of two halves for US stocks, with gains on Monday and Tuesday driven by signs that recent military action involving Israel and Iran was not likely to escalate. However, figures published on Thursday showed US GDP had fallen to 1.6% in the first three months of the year, well below analysts’ 2.4% estimate. In the corporate sector the news was more upbeat, with strong results from consumer-facing businesses and a leading manufacturer of electric vehicles.

UK

In the UK, the FTSE 100 ended Thursday 2.3% up for the week so far after hitting successive all-time high closes on hopes of imminent interest rate cuts. The probability of the Bank of England loosening monetary policy before the Fed has caused the pound to drop further against the dollar, and with many of Britain’s largest companies earning revenues internationally, this added to their value. After a Bank official said inflation was likely to remain below target over the next three years, UK investors are now pricing in an initial rate reduction in August. Recent economic data showed a continued rebound from last year’s mild recession, while a new round of takeover activity also helped to lift the market.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.1% for the week, while France’s CAC 40 slipped back slightly, losing 0.1%. There are growing signs from Germany that the economy is on the right track, with the latest business activity survey indicating green shoots of recovery, while confidence among the country’s private sector firms is also on the up. However, the eurozone’s recent economic difficulties have been reflected in some disappointing first-quarter earnings figures from consumer goods companies.

Asia

In Asia, the Hang Seng index in Hong Kong gained 6.5% as shares continued to recover some of the losses experienced around the turn of the year. Reports showing the extent of the Chinese government’s recent support for the country’s stock markets helped to lift prices, as did further outlook upgrades from two major international investment banks. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 1.5% but remains well off March’s highs. The country’s technology stocks in particular have had a difficult week as investors await potential monetary tightening from the Bank of Japan.

April 19
April 25
Change (%)
FTSE 100
7895.9
8078.9
2.3
FTSE 250
19391.3
19602.0
1.1
S&P 500
4967.2
5048.4
1.6
Dow Jones
37986.4
38085.8
0.3
DAX
17737.4
17923.8
1.1
CAC 40
8022.4
8016.7
-0.1
ACWI
743.3
755.9
1.7
Hong Kong Hang Seng
16224.1
17284.5
6.5
Nikkei 225
37068.4
37628.5
1.5

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

26 April 2024
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Market Monitor – 26 April 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 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.

 

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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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