Market Monitor – 10 June 2022
Insights

Market Monitor – 10 June 2022

Concerns about rising interest rates – and their likely impact on borrowing costs and economic growth – have once again been to the fore this week, pushing stock markets in Europe and the US lower.
The European Central Bank (ECB) confirmed on Thursday that it would raise rates for the first time in 11 years when it meets next month as it attempts to bring rampant eurozone inflation under control. The ECB is also planning to bring its asset-purchase programme to a halt. This has raised fears that some heavily indebted European Union member states such as Italy, Spain and Greece could see their borrowing costs rise more rapidly than in, say, Germany or France. This disparity could act as an additional brake on eurozone growth while also making monetary policy more challenging to formulate.
There were few signs this week that inflationary pressures are likely to ease in the weeks ahead: the price of oil, for example, remains stubbornly high thanks in part to an easing of Covid-19 restrictions in China and the likelihood that the country’s industrial production will start to ramp up in the coming weeks. The World Bank cited sharp price rises as the main reason for it downgrading its global growth forecast for 2022, which was cut to 2.9% from 4.1%. The organisation added that rising interest rates coupled with soaring prices were likely to create a significant risk of stagflation.

US markets

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 9 June 1.9% down for the week so far, with the S&P 500 losing 2.2%. Following gains at the start of the week, share prices in the US fell on Wednesday and Thursday as investors anticipated yet more worrying inflation data at the end of the week.

Europe

In the UK, the FTSE 100 closed on Thursday 0.7% down for the week, with the index’s numerous defensive stocks, such as energy and mining companies, helping to limit losses. The London market shrugged off Boris Johnson’s latest political difficulties – the prime minister survived a vote of no-confidence among Tory MPs on Monday – but new data from the service and construction sectors showed a worrying trend to lower growth and rising prices.
In Frankfurt, the DAX index ended Thursday’s session down 1.8% for the week, while France’s CAC 40 lost 2%. Shares across the eurozone dipped following the ECB’s interest-rate announcement and signs of rising bond yields in southern Europe.

Asia

In Asia, the Hang Seng index in Hong Kong rose 3.7% with investors welcoming news of a lifting of lockdown restrictions in Shanghai and elsewhere. Chinese markets also benefited from the prospect of lower tariffs on exports to the US.
Japan’s Nikkei 225 index of leading shares ended Thursday 1.7% higher following positive news from China and a weakening of the yen, which has improved the outlook for Japanese exporters.
June 3
June 9
Change (%)
FTSE 100
7529.3
7476.2
-0.7
FTSE All-share
4162.0
4132.2
-0.7
S&P 500
4108.5
4017.8
-2.2
Dow Jones
32899.7
32272.8
-1.8
DAX
14460.1
14198.8
-1.8
CAC 40
6485.3
6385.5
-2.0
ACWI
649.2
637.8
-1.8
Hong Kong Hang Seng
21082.1
28246.5
3.7
Nikkei 225
27761.6
28246.5
1.7
Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, as at 9 June 2022.
10 June 2022
Jim Griffin
Jim Griffin
Investment Content Manager
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 – 10 June 2022

1 Manufacturers’ Goods Index, February, United States Census Bureau, 4/4/2022.
2 Oil giant Shell to take £3.8bn hit by leaving Russia, bbc.co.uk, 7/4/2022.

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 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 Cownnaught 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

19 July 2024

Jim Griffin

Investment Content Manager

Market Monitor – 19 July 2024

Global stock markets had a difficult week, with technology stocks in particular giving up some of their recent gains.
Read time - 3 min
18 July 2024

Nish Patel

Director, Portfolio Manager, Global Small Cap

Global small caps – preparing for a new cycle

After a long period of underperformance, a new cycle may be emerging in smaller companies. If history is a guide the initial recovery should be strong.
Watch time - 40 mins
12 July 2024

Jim Griffin

Investment Content Manager

Market Monitor – 12 July 2024

Global stock markets had a difficult week, with technology stocks in particular giving up some of their recent gains.
Read time - 3 min
19 July 2024

Jim Griffin

Investment Content Manager

Market Monitor – 19 July 2024

Global stock markets had a difficult week, with technology stocks in particular giving up some of their recent gains.
Read time - 3 min
19 July 2024

Anthony Willis

Investment Manager

Multi-Manager Perspectives: Trump is in the ascendancy

It has been a busy couple of weeks of news, with the focus moving swiftly on from the UK and French elections to the US presidential election.
Read time - 8 min
18 July 2024

Nish Patel

Director, Portfolio Manager, Global Small Cap

Global small caps – preparing for a new cycle

After a long period of underperformance, a new cycle may be emerging in smaller companies. If history is a guide the initial recovery should be strong.
Watch time - 40 mins
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 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 Cownnaught 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.

Thank you. You can now visit your preference centre to choose which insights you would like to receive by email.

To view and control which insights you receive from us by email, please visit your preference centre.

Play Video

CT Property Trust- Fund Manager Update

Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium