Market Monitor – 1 December 2023
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Market Monitor – 1 December 2023

Global stock markets ended a strong month on a generally positive note as investors continue to hope that central banks will soon be able to start cutting interest rates

Fresh signs that inflation is being brought under control in the United States, and upbeat comments from a senior decision maker at the Federal Reserve, led to share price gains around the world on Wednesday and Thursday. Fears that rising oil prices could cause further economic turbulence receded as reports suggested Saudi Arabia was struggling to find support from fellow OPEC members to implement planned production cuts. Crude oil values came under further pressure from concerns that ongoing problems in China’s financial and property sectors could spill over into the country’s wider economy.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.6% up for the week so far, with the S&P 500 gaining 0.2%. November proved to be the best month of 2023 for US markets as expectations of interest rate cuts have grown. The news that the Fed’s main inflation measure, the personal consumption expenditures (PCE) price index, had risen at its slowest rate in more than two years in October only added to investor optimism. Signs of the resilience of the American economy continue to emerge, with the third-quarter output figure revised upwards and signs of increasing business investment. Consumer confidence also increased in November for the first time in several months.

UK

In the UK, the FTSE 100 closed on Thursday 0.5% down for the week so far as declining oil and commodity prices limited gains among the numerous energy and mining stocks on the index. The likelihood of rate cuts in Britain seems a little more remote than in the US, with Bank of England governor, Andrew Bailey, warning that it was “too soon” to start talking about easing monetary policy while inflation remains well above target. Further falls in property prices were reported this week, while retailers are worried that spending over the Christmas period could be considerably weaker than usual.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.2% for the week, while France’s CAC 40 gained 0.2%. European stocks advanced after reports of another decline in inflation in Germany, which was seen to increase the chances of eurozone interest rate cuts. However, European Central Bank president, Christine Lagarde, warned that pressure from wage growth could complicate the picture for policymakers. High borrowing costs have driven lending across the eurozone to an eight-year low, while confidence among German consumers fell in November.

Asia

In Asia, the Hang Seng index in Hong Kong dropped 2.9% on reports that a major financial firm was facing a criminal investigation after becoming insolvent. It is thought that the company made significant losses through its dealings in China’s real estate sector, and investors are concerned that other financial businesses could be facing similar problems. Recent economic data did little to help sentiment, with factory activity recording a surprise decline in November. Japan’s Nikkei 225 index of leading shares, meanwhile, fell 0.4% as a rise in the value of the yen held back international stocks and investors took profits following the recent strong run. Retail sales continue to grow and the Japanese parliament approved stimulus measures on Thursday.

24 November
30 November
Change (%)
FTSE 100
7488.2
7453.8
-0.5
FTSE 250
18458.1
18233.5
-1.2
S&P 500
4559.3
4567.8
0.2
Dow Jones
35390.2
35950.9
1.6
DAX
16029.5
16215.4
1.2
CAC 40
7292.8
7310.8
0.2
ACWI
692.2
694.4
0.3
Hong Kong Hang Seng
17559.4
17042.9
-2.9
Nikkei 225
33625.5
33486.9
-0.4

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 30 November 2023.

1 December 2023
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Tochi Nwozuzu
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Market Monitor – 1 December 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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