Market Monitor – 4 October 2024

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Market Monitor – 4 October 2024

Jim Griffin
Jim Griffin
Investment Content Manager

Global stock markets suffered sharp losses this week following an intensification of tensions in the Middle East.

Escalation of tensions between Israel and Iran sparked fears of a more widespread conflict in the region, and investors are concerned about the potential impact on international trade and the cost of energy. Having fallen steadily over the summer, oil prices have rebounded in the past few days, and threaten to add to inflationary pressures around the world. Share prices in China have been the world’s best performers for a second consecutive week following the announcement of new stimulus measures but, elsewhere, concern about sluggish economic performance has also weighed on sentiment.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.7% down for the week so far, with the S&P 500 falling by the same amount. The week began on an upbeat note, but share prices fell back on Tuesday after US port workers announced a programme of industrial action that is likely to affect local and global supply chains. There was positive news from the employment market, with new jobs figures coming in higher than expected. However, the uncertainty surrounding the Middle East situation and the upcoming presidential election increasingly dominated sentiment as the week wore on.

UK

In the UK, the FTSE 100 closed on Thursday 0.6% down for the week so far. Large-cap shares in London outperformed their counterparts in Europe thanks mainly to rising oil prices and a sharp decline in the value of sterling. The pound slumped after Bank of England governor, Andrew Bailey, said he and his colleagues were likely to take a more proactive approach to cutting interest rates in the months ahead, with inflation expectations having eased significantly. There was some gloomy economic news, however, with UK GDP for the second quarter of 2024 being revised downward slightly and a reported slump in confidence among manufacturers. Mining stocks were hit by a decline in commodity prices as investors questioned whether China’s stimulus measures would lead to a sustained rise in demand for metals and other resources.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 2.4% for the week, while France’s CAC 40 slumped 3.9%. Tensions in the Middle East and further signs of weakness in the eurozone economy led to significant losses on European bourses, despite the news that inflation in the bloc had fallen to 1.8% – below the European Central Bank target – in September. Figures published on Tuesday showed that manufacturing output in the euro area was falling at its fastest pace this year, while service sector growth in both Germany and France stagnated last month.

Asia

In Asia, the Hang Seng index in Hong Kong gained 7.2% as the impact of last week’s stimulus announcements continued to be felt. On Monday, markets in mainland China recorded their largest single-day rise since the financial crisis. There were particularly strong gains in the property sector after a number of major cities announced a lifting of homebuying restrictions. Japan’s Nikkei 225 index of leading shares, meanwhile, fell 3.2% after the Tokyo market reacted negatively to Shigeru Ishiba taking over as prime minister. Ishiba has supported interest rate rises in the past, and investors are concerned his appointment will make further increases more likely.

September 27
October 3
Change (%)
FTSE 100
8320.8
8269.3
-0.6
FTSE 250
21240.6
20743.4
-2.3
S&P 500
5738.2
5699.9
-0.7
Dow Jones
42313.0
42011.6
-0.7
DAX
19473.6
18999.2
-2.4
CAC 40
7791.8
7485.4
-3.9
ACWI
852.8
842.3
-1.2
Hong Kong Hang Seng
20632.3
22113.5
7.2
Nikkei 225
39829.6
38552.1
-3.2

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 3 October 2024.

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Market Monitor – 4 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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