Market Monitor – 7 June 2024
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Market Monitor – 7 June 2024

Global stock markets had a positive week after central banks on both sides of the Atlantic made long-awaited cuts to interest rates.

While the Federal Reserve in the United States continues to weigh up its options, the Bank of Canada and the European Central Bank have decided to ease monetary policy considering recent falls in inflation. The Fed and the Bank of England are expected to follow suit in the next few months – but exactly when remains open to question.

Elsewhere, renewed falls in oil prices helped ease concerns about rising price pressures, and there were further gains among companies with significant exposure to artificial intelligence technology.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.5% up for the week so far, with the S&P 500 gaining 1.4% after hitting an all-time high at close on Wednesday. Investors in the US welcomed signs that the American economy is starting to cool – a development that makes it more likely the Fed will cut rates at the end of the summer. Latest figures showed there had been a sharper fall in new job openings than analysts had expected, while output in the manufacturing sector declined. Technology stocks performed particularly impressively following further upbeat trading news from firms involved in AI.

UK

In the UK, the FTSE 100 closed on Thursday 0.1% up for the week so far, with gains limited by weakness in oil prices. The ongoing election campaign is doing little to move markets at present, but there was some positive economic news in the shape of a return to growth for the UK manufacturing sector and a small increase in retail sales in May. All eyes are now on the Bank of England’s Monetary Policy Committee meeting later this month.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.8% for the week, while France’s CAC 40 gained 0.6%. While the ECB’s first rate cut since 2019 was universally expected, the bank’s next move is less obvious. ECB president Christine Lagarde said she was now expecting inflation to be slightly higher this year than previously forecast, making a second rate cut in July less likely. Data published this week showed that business activity in the eurozone was growing at its fastest rate in a year, although separate figures highlighted weakness in manufacturing and retail sales.

Asia

In Asia, the Hang Seng index in Hong Kong gained 2.2% after statistics indicated that China’s recovery is gathering pace. The country’s services sector performed particularly strongly in May, while an upgraded growth forecast from a major credit rating agency also boosted investor morale. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.6%, with strong performance from services likewise driving gains. Japan’s semiconductor firms also benefited from improving AI sentiment in the US.

May 31
June 6
Change (%)
FTSE 100
8275.4
8285.3
0.1
FTSE 250
20730.1
20715.9
-0.1
S&P 500
5277.5
5353.0
1.4
Dow Jones
38686.3
38886.2
0.5
DAX
18497.9
18646.5
0.8
CAC 40
7992.9
8040.1
0.6
ACWI
785.5
796.5
1.4
Hong Kong Hang Seng
18079.6
18476.8
2.2
Nikkei 225
38487.9
38703.5
0.6

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 6 June 2024.

7 June 2024
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Market Monitor – 7 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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