Market Monitor – 3 May 2024
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Market Monitor – 3 May 2024

Global stock markets had a challenging week due to continued uncertainty around the timing of interest rate cuts in the United States, as well as mixed corporate earnings figures.

While it came as no surprise that the Federal Reserve chose to leave rates unchanged at its Wednesday meeting, Fed chair Jerome Powell gave little indication as to when the central bank might start to relax monetary policy. With inflation in the US remaining stubbornly above its 2% target, investors have started to worry that the Fed could in fact be forced to raise rates – although Powell’s comments suggested this is not currently a route that he and his colleagues expect to take.

Meanwhile, hopes of a ceasefire between Israel and Hamas helped ease geopolitical tensions and saw the price of oil fall back from its recent high, and the latest set of improved business data from the Chinese economy helped boost share prices in Asia.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday flat for the week so far, with the S&P 500 falling 0.7%. The week began positively with shares in one of America’s biggest technology firms rising after it announced a distribution deal in China. However, corporate results on Tuesday and Wednesday were more uneven, with a few earnings statements suggesting that trading conditions in the US are becoming more challenging. Recent data indicated a slowdown in the manufacturing sector, although the American employment market remains resilient.

UK

In the UK, the FTSE 100 closed on Thursday 0.4% up for the week so far after extending its recent strong run to reach another record high. Corporate results from the energy and banking sectors helped support the week’s advance, although weak economic data weighed on the market to some extent. Retailers warned of fresh produce price rises over the summer due to difficult growing conditions in recent months, while manufacturers are also expected to raise their prices in response to ongoing supply-chain challenges. Meanwhile, the OECD has predicted that growth in the UK will be the lowest of all the G7 countries in 2025.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 1.5% for the week, while France’s CAC 40 fell 2.1%. Comments from a senior policymaker at the European Central Bank dampened hopes of multiple interest rate cuts this summer. Investors had hoped the ECB would reduce borrowing costs in both June and July, but this now appears increasingly unlikely given the recent recovery in the eurozone economy. Figures published this week showed a larger-than-expected rise in first-quarter GDP in the bloc, although there are signs that factory output has started to slow in recent weeks.

Asia

In Asia, the Hang Seng index in Hong Kong gained 3.1% to extend its recent strong run. Latest figures showed the recovery in China’s manufacturing sector had continued in April, while news that politicians in Chengdu had lifted restrictions on property purchases raised hopes other cities would follow suit, providing a boost for the country’s struggling real estate sector. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.8% as policymakers took action to shore up the yen in the face or recent dollar strength. However, there were fresh signs of weakness in the Japanese economy, with consumer confidence reported to have fallen last month.

April 26
May 2
Change (%)
FTSE 100
8139.8
8172.2
0.4
FTSE 250
19824.2
20052.3
1.2
S&P 500
5100.0
5064.2
-0.7
Dow Jones
38239.7
38225.7
0.0
DAX
18161.0
17896.5
-1.5
CAC 40
8088.2
7914.7
-2.1
ACWI
762.4
760.5
-0.2
Hong Kong Hang Seng
17651.2
18207.1
3.1
Nikkei 225
37934.8
38236.1
0.8

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 2 May 2024.

3 May 2024
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Tochi Nwozuzu
Content Marketing Executive
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Market Monitor – 3 May 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.

 

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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