Market Monitor – 8 September 2023
Insights

Market Monitor – 8 September 2023

After a positive start to the month, global stock markets lost ground this week on fears that rising oil prices could increase inflationary pressures and lead to further hikes in interest rates

Reports that Russia and Saudi Arabia have agreed to extend the limits imposed earlier this year on crude oil production have driven prices higher, while the prospect of industrial action involving workers at liquid petroleum gas (LPG) producers in Australia has raised fears of spikes in energy costs, particularly in Europe. Latest data also suggests higher interest rates are at last starting to dampen economic activity.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1% down for the week so far, with the S&P 500 shedding 1.4%. While investors on the whole expect the Federal Reserve to leave interest rates unchanged this month, increasing oil prices and data showing strength in the services sector could put pressure on the Fed to tighten further. However, a sharp drop in factory orders last month is the latest sign that rising borrowing costs are impacting manufacturing companies in the US. Technology stocks endured an especially tough week: aside from the prospect of more rate rises, the Chinese government’s decision to ban its employees from using a major US electronics manufacturer’s devices raised fears of further state intervention in trade between the world’s two largest economies.

UK

In the UK, the FTSE 100 closed on Thursday 0.3% down for the week so far with losses limited by gains among the country’s major energy companies following the rise in oil prices. There was also positive news from Bank of England governor Andrew Bailey who told MPs that interest rates in the UK were close to their peak. Indeed, it appears increasingly difficult for the Bank to justify further rate hikes given the parlous state of the UK economy. Recent data showed that private sector activity declined in August for the first time since January, while house prices fell last month at the steepest rate since 2009 during the global financial crisis. In addition, industry bodies said Britain was on the brink of recession and predicted a spike in insolvencies in 2024.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 0.8% for the week, while France’s CAC 40 lost 1.4%. Investors in Europe faced a slew of negative economic data, starting with a drop in investor confidence and a decline in German export volumes at the beginning of the week. This news was followed by reports indicating that eurozone private sector output for August had shrunk at its fastest rate in three years, with particular weakness in the construction sector. A warning from the OECD that the European Central Bank may need to raise interest rates further to bring inflation under control did little to improve sentiment.

Asia

In Asia, the Hang Seng index in Hong Kong dipped 1.2%, despite a strong start to the week. Shares in China rose on Monday on signs that stimulus measures introduced by the Beijing government were starting to take effect, while Chinese manufacturing data for August showed a significant improvement. However, the fall in exports announced on Thursday saw doubts about the strength of China’s economic recovery return. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.9% and is now more than 20% higher than at this point in 2022. This week’s gains were driven to a large extent by reports of rises in corporate profits among some of Japan’s biggest firms.

1 September
7 September
Change (%)
FTSE 100
7464.5
7441.7
-0.3
FTSE 250
18536.9
18383.9
-0.8
S&P 500
4515.8
4451.1
-1.4
Dow Jones
34837.7
34500.7
-1.0
DAX
15840.3
15718.7
-0.8
CAC 40
7296.8
7196.1
-1.4
ACWI
687.3
677.7
-1.4
Hong Kong Hang Seng
18382.1
18202.1
-1.0
Nikkei 225
32710.6
32991.1
0.9

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 7 September 2023.

8 September 2023
Share article
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Key topics
Related topics

PDF

Market Monitor – 8 September 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.

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.

Related insights

17 April 2024

In search of sustainability – following Highway 101

Travelling down the US west coast we met 25 companies in five days. Learn more about the tech and healthcare businesses shaping our future.
Read time - 3 min
12 April 2024

Market Monitor – 12 April 2024

Global stock markets have endured another challenging week as a result of signs that policymakers are struggling to keep inflation in check in the United States.
Read time - 3 min
5 April 2024

Market Monitor – 5 April 2024

Global stock markets had a difficult week following Easter, with conflicting economic data and further rises in commodity prices creating uncertainty for investors.
Read time - 3 min
17 April 2024

In search of sustainability – following Highway 101

Travelling down the US west coast we met 25 companies in five days. Learn more about the tech and healthcare businesses shaping our future.
Read time - 3 min
16 April 2024

In Credit Weekly Snapshot – April 2024

Our fixed income team provide their weekly snapshot of market events.
Read time - 5 min
15 April 2024

Steven Bell

Chief Economist, EMEA

Is interest rate pessimism overdone?

The European Central Bank looks set to cut in June and there are reasons to believe the US and UK won’t be too far behind.
Watch time - 6 min
true
true

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.

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Funds and Prices

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Our Capabilities

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.