Market Monitor – 29 July 2022

Market Monitor – 29 July 2022

Stock markets around the world have enjoyed a largely positive week despite another large interest-rate increase by the US Federal Reserve (Fed) and signs that the American economy may be in a recession.

US markets

The Fed’s decision, on Wednesday, to raise rates by 75 basis points (bps), following similar moves in May and June, might have been expected to drive another wave of selling under other circumstances. However, the severity of inflation concerns facing the US and other major economies – and the need, therefore, for decisive action by central banks – meant that investors appeared to take the decision in their stride.
Data published on Thursday showed that the US economy had shrunk for a second consecutive quarter, between April and June this year. While this meets some economists’ definition of a recession, markets again displayed little negative reaction. Sentiment was helped by statements from Fed chair Jerome Powell and Janet Yellen, the Treasury secretary, which highlighted the economy’s underlying strength, in particular, the current high levels of employment.
On Wall Street, the Dow Jones Industrial Average ended trading on Thursday up 2% for the week so far, with the S&P 500 gaining 2.8%. Technology stocks had an especially good week, despite the Fed’s rate hike: there had been concerns leading up to the decision that the Fed might raise rates by a full 100bps.
With earnings season in full swing, second-quarter results from American retailers again highlighted weakening consumer demand, although there was better news from major US tech firms.


In the UK, the FTSE 100 closed on Thursday 0.9% up for the week: the biggest story in London was news of huge profits rises for two major energy companies as a result of the surge in oil and gas prices this year. Meanwhile, new economic data showed a continued slowdown in UK factory orders and output – although there are signs that falling commodities prices could be helping to ease inflationary pressures among manufacturers.

In Frankfurt, the DAX index ended Thursday’s session up 0.2% for the week, while France’s CAC 40 gained 2%. Shares in Germany lagged behind again as the European Union published plans to reduce the bloc’s dependence on Russian gas ahead of winter. The energy-intensive manufacturing sector in Germany stands to be hit hardest by such measures. A reduction in gas supply via Russia’s Nord Stream 1 pipeline this week, also did little to boost sentiment.


In Asia, the Hang Seng index in Hong Kong rose 0.1%, with gains limited by the Hong Kong central bank’s decision to raise interest rates. Banks and property developers were hit disproportionately hard by the news. Meanwhile, the International Monetary Fund cut its 2022 growth forecast for the Chinese economy to 3.3% from 4.4%.


Japan’s Nikkei 225 index of leading shares had lost 0.4% by Thursday’s close, with a strengthening Yen weighing on the value of the country’s numerous multinational companies and exporters.

June 3
June 9
Change (%)
FTSE 100
FTSE All-share
S&P 500
Dow Jones
CAC 40
Hong Kong Hang Seng
Nikkei 225

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, as at 29 July 2022.

2 August 2022
Jim griffin
Jim Griffin
Investment Content Manager
Share article
Share on twitter
Share on linkedin
Share on email
Key topics
Related topics
Listen on stitcher badge
Share article
Share on twitter
Share on linkedin
Share on email
Key topics
Related topics

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

8 August 2022

Steven Bell

Director, Multi Strategy Investments

When will central banks stop hiking interest rates?

Chief Economist, Steven Bell expects further rises but believes that the Federal Reserve needs to go much further than its UK and European counterparts.
Watch time - 5 min
8 August 2022

Fixed Income Desk

In Credit - Weekly Snapshot

In Credit Weekly Snapshot – August 2022

Our fixed income team provide their weekly snapshot of market events.
Read time - 3 min
5 August 2022

ESG knowledge shared: August 2022

Keep up to date with responsible investing in our monthly roundup of highlights – interesting events, articles we’re reading, podcasts and more.
Read time - 4 min

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.

Please confirm a few details about yourself to visit your preference centre

*Mandatory fields

Something went wrong, please try again

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.

Looking for help?

Adviser Edge

Access professional support focusing on financial planning, investment and practice management. Create an account to access structured CPD content and log your CPD hours.