Market Monitor – 15 March 2024
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Market Monitor – 15 March 2024

Global stock markets have enjoyed another largely positive week despite concerns that sticky inflation could lead to delays in interest rate cuts.

Investors have again reacted in relaxed fashion to mixed economic data, while the latest batch of corporate earnings reports from the high-flying US technology sector have provided a fresh source of optimism.

Major indices shrugged off signs that the rate of price rises in the US remains well above the Federal Reserve’s 2% target. The news is thought to have made it considerably less likely that the Fed will cut rates at its June meeting, as had previously been expected. However, if this week’s rise in oil prices continues, there is a risk markets could become more jittery. Crude values increased sharply after it was reported that Ukraine forces were planning to attack Russian refineries, while oil reserves in the US have fallen more than forecast and the International Energy Agency has warned of production shortfalls in the months ahead.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.5% up for the week so far, with the S&P 500 matching this rise. US stocks made significant gains on Tuesday after a major software company announced quarterly results well ahead of expectations. These advances came despite consumer price index figures which showed annual inflation had risen to 3.2% in February, contrary to analysts’ predictions. This was followed up by Thursday’s surprise uptick in producer price inflation, which led US markets to give up some but not all of their earlier gains.

UK

In the UK, the FTSE 100 closed on Thursday 1.1% up for the week so far as rising oil prices bolstered the index’s energy stocks. Miners also benefited from signs that demand could be on the verge of recovery in China, while investors in Britain welcomed the news that the domestic economy expanded by 0.2% in January. Analysts now expect the technical recession of late 2023 to be short lived thanks to signs of a recovery in retail spending. News of further weakness in the UK employment market, meanwhile, provides the Bank of England with further justification for interest rate cuts in the coming months.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.7% for the week, while France’s CAC 40 gained 1.7% as the recent strong run of European stocks continued. Both indices hit new highs this week as inflation was confirmed to have fallen to 2.7% in Germany in February. Meanwhile, industrial production levels across the eurozone also dropped faster than expected last month. As appears to be the case in the UK, this puts greater pressure on central bankers to cut rates sooner rather than later.

Asia

In Asia, the Hang Seng index in Hong Kong gained 3.7% during a rare positive week. Figures published last weekend showed at least a temporary pause in deflation in China, with prices rising 0.7% in February. Investors are hopeful this represents the start of a sustained return to growth. Japan’s Nikkei 225 index of leading shares, meanwhile, fell 2.2% as speculation grew that the Bank of Japan could end its policy of negative interest rates when it meets next week.

March 8
March 14
Change (%)
FTSE 100
7659.7
7743.2
1.1
FTSE 250
19601.8
19486.0
-0.6
S&P 500
5123.7
5150.5
0.5
Dow Jones
38722.7
38905.7
0.5
DAX
17814.5
17942.0
0.7
CAC 40
8028.0
8161.4
1.7
ACWI
771.3
772.7
0.2
Hong Kong Hang Seng
16353.4
16961.7
3.7
Nikkei 225
39688.9
38807.4
-2.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 14 March 2024.

15 March 2024
Jim Griffin
Jim Griffin
Investment Content Manager
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Market Monitor – 15 March 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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