Market Monitor – 10 March 2023
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Market Monitor – 10 March 2023

Global stock markets have endured another difficult week as concerns about the pace of interest rate rises resurfaced

US Federal Reserve chair Jerome Powell’s appearance in front of the Senate drove share prices lower on Tuesday after he warned that policymakers may need to raise rates by as much as 50 basis points at their next meeting – more than the market had expected – to deal with persistent inflation.

Sentiment was also negatively affected at the start of the week by lacklustre growth targets set by the Beijing government for the Chinese economy this year. Investors had been banking on China’s post-pandemic reopening to provide a major boost to global growth in 2023, but there remains a significant level of uncertainty around the country’s outlook.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday down 3.4% for the week so far, with the S&P 500 falling 3.1%. Alongside concerns about monetary policy, reports that a major bank for start-up companies was seeking extra cash from shareholders sparked a broader sell-off on Thursday. Investors worry that the rising cost of capital could create wider difficulties for the US financial system. The news overshadowed data from the jobs market which showed a sharp rise in unemployment claims – a development that could ease fears about interest rate hikes.

UK

In the UK, the FTSE 100 closed on Thursday 0.8% down for the week so far. Worries about weaker growth in China weighed heavily on commodity and energy prices, driving shares in London’s mining and oil stocks lower. Latest government figures showed the UK labour market remains tight, which could add to inflationary pressures, while consumer spending dipped in February. On the positive side, construction activity bounced back to some extent last month, while car sales rose by more than a quarter at the start of 2023 compared with 12 months earlier thanks to an easing of supply-chain issues.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.4% for the week, while France’s CAC 40 fell back 0.4%. As in the UK, eurozone retail sales weakened last month while senior European Central Bank officials echoed the Fed’s warning of further rate hikes, with shares in real estate companies particularly affected. However, in general Europe’s banks continue to perform well thanks to higher interest rates and the relatively resilient household sector.

Asia

In Asia, the Hang Seng index in Hong Kong fell 3.1%, with concerns about the weak outlook for the Chinese economy weighing on investor sentiment. Signs that inflation was slowing provided further evidence that growth rates may undershoot expectations. Japan’s Nikkei 225 index of leading shares, meanwhile, continued their strong recent run and advanced 2.5%. Weak GDP data for the final three months of 2022 helped calm fears that the Bank of Japan might alter its current dovish approach to monetary policy, driving share prices in Tokyo back towards last summer’s highs.

3 March
9 March
Change (%)
FTSE 100
7947.1
7880.0
-0.8
FTSE 250
19925.8
19692.9
-1.2
S&P 500
4045.6
3918.3
-3.1
Dow Jones
33391.0
32254.9
-3.4
DAX
15578.4
15633.2
0.4
CAC 40
7348.1
7315.9
-0.4
ACWI
639.7
624.5
-2.4
Hong Kong Hang Seng
20567.5
19925.74
-3.1
Nikkei 225
27927.5
28623.2
2.5

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

10 March 2023
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Market Monitor – 10 March 2023

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.

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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