Market Monitor –18 October 2024

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Market Monitor –18 October 2024

Jim Griffin
Jim Griffin
Investment Content Manager

Global stock markets had a largely positive week as a result of solid economic data, upbeat corporate earnings statements and further falls in oil prices

However, there were indications of potential headwinds: the International Monetary Fund warned that levels of government debt in many countries were becoming unsustainable and could have a negative impact on long-term growth. Meanwhile, share prices in Asia were hit by fresh concerns about the extent and effectiveness of stimulus measures in China, and there were also signs of looming weakness in the global semiconductor sector following a period of impressive gains.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.9% up for the week so far, with the S&P 500 gaining 0.5%, as both indexes recorded all-time highs. Gains early in the week were underpinned by strong third-quarter trading statements from the banking sector. Meanwhile, data published on Thursday showed that retail sales had risen faster than expected in September. Despite a handful of blips in recent employment figures, most statistics continue to indicate that the US economy is on course to achieve a prized “soft landing” following the Federal Reserve’s post-pandemic monetary tightening programme.

UK

In the UK, the FTSE 100 closed on Thursday 1.6% up for the week so far. This followed economic data raised the likelihood that the Bank of England would be able to make two more interest rate cuts before the end of the year. Employment market figures issued on Tuesday revealed that wage growth had dipped below 5%, while Wednesday’s inflation statistics showed that the Consumer Prices Index had fallen to 1.7% – lower than analysts had expected. The news drove a fall in government bond yields, a development that should give chancellor of the exchequer, Rachel Reeves, more room to manoeuvre when she announces her spending and taxation plans in the 30 October budget.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 1.1% for the week, while France’s CAC 40 gained 0.1%. A record high for German shares was underpinned by a rise in economic confidence in the country, while the European Central Bank cut interest rates, as expected, on Thursday. ECB president, Christine Lagarde, warned that inflation in the eurozone could rise in the short term before falling back in line with the 2% target in 2025. Technology stocks lagged the wider market earlier in the week after a major semiconductor firm published a downbeat trading outlook, and worries about the impact of stimulus measures in China dragged on shares of luxury goods manufacturers.

Asia

In Asia, the Hang Seng index in Hong Kong fell 5.5% as investors continued to take a more sceptical view of recent government stimulus announcements. Officials’ failure to provide more detail regarding their plans to reboot China’s property market led to further losses – although Chinese stocks remain well above their August lows. Japan’s Nikkei 225 index of leading shares fell 1.8% as investors reacted with concern to the falls in the Chinese market. Stocks in Tokyo were also impacted by concerns about growth in the semiconductor sector, while data for August showed weakness in Japanese services and industrial output.

October 11
October 17
Change (%)
FTSE 100
8253.7
8385.1
1.6
FTSE 250
20764.9
21100.9
1.6
S&P 500
5815.0
5841.5
0.5
Dow Jones
42863.9
43239.1
0.9
DAX
19373.8
19583.4
1.1
CAC 40
7577.9
7583.7
0.1
ACWI
852.7
852.1
-0.1
Hong Kong Hang Seng
21252.0
20079.1
-5.5
Nikkei 225
39605.8
38911.2
-1.8

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 17 October 2024.

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Market Monitor –18 October 2024

Important information

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

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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