Market Monitor – 9 June 2023
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Market Monitor – 9 June 2023

Global stock markets lacked direction this week after the rally in the wake of the US debt-ceiling deal fizzled out, and investors waited to see if central banks would continue their recent run of interest rate rises later this month

The Federal Reserve in the US, the European Central Bank (ECB) and the Bank of England are all scheduled to make their next monetary policy decisions in the coming fortnight. However, with signs growing that higher rates are starting to have some impact on inflation – as well as on wider economic activity – investors are hopeful that June may see at least a pause in the rate-hiking program.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.2% up for the week so far, with the S&P 500 gaining 0.3%. Both indices had made strong gains at the end of last week after the House of Representatives and the Senate acted quickly to approve plans to raise the US government’s debt ceiling, averting a potential crisis. In recent days, investors have seen more mixed data about the American economy: signs that the service sector was starting to struggle were followed by figures that indicated a surprise rise in unemployment claims. If the US labour market is indeed finally starting to soften, it could be a sign that inflationary pressures are weakening – and the Fed may therefore decide that further rate increases may no longer be necessary.

UK

In the UK, the FTSE 100 closed on Thursday 0.1% up for the week so far. While the FTSE’s major oil companies welcomed Saudi Arabia’s decision to cut crude oil production – driving prices higher – the index’s internationally focused stocks suffered from a rise in the value of sterling against the dollar later in the week. There was good news from motor retailers, with new car sales staging a recovery, as well as signs of further expansion in the service sector. House prices continued to weaken while both housebuilding and mortgage lending were down. Construction firms warned that further interest-rate rises this year could have a disastrous impact on the sector.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 0.4% for the week, while France’s CAC 40 lost 0.7%. Data showed that the eurozone economy had entered recession after shrinking in the first three months of the year: weakness in Germany and Ireland were primarily to blame after consumer spending came under severe pressure from higher energy bills. ECB officials said that further interest rate rises were under consideration since there was no clear evidence as yet that inflation in the bloc had peaked.

Asia

In Asia, the Hang Seng index in Hong Kong gained 1.8%, with investors hopeful the Chinese government could introduce stimulus measures to boost the country’s flagging economy. A report indicating that exports had fallen faster than expected in May was the latest evidence of the country’s uneven recovery since scrapping Covid-19 controls at the turn of the year. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.4%. Strength in miners and retail companies offset losses in the technology sector as investors looked to cash in on recent gains in semiconductor and electronics companies in particular.

2 June
8 June
Change (%)
FTSE 100
7607.3
7599.7
-0.1
FTSE 250
19149.3
19107.1
-0.2
S&P 500
4282.4
4293.9
0.3
Dow Jones
33762.8
33833.6
0.2
DAX
16051.2
15990.0
-0.4
CAC 40
7270.7
7222.2
-0.7
ACWI
663.3
665.8
0.4
Hong Kong Hang Seng
18949.9
19299.2
1.8
Nikkei 225
31524.2
31641.3
0.4

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 8 June 2023.

9 June 2023
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Market Monitor – 9 June 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.

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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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