Market Monitor – 9 February 2024
Insights

Market Monitor – 9 February 2024

Global stock markets had a largely positive week despite the latest indications that central bank interest rate cuts remain some way off.

Investors have chosen to focus instead on upbeat economic data and company earnings statements for the final quarter of 2023 that overall have exceeded expectations.

The week began on a lacklustre note after Federal Reserve Chair, Jerome Powell, told reporters that the Fed would take a “prudent” approach to monetary policy for the foreseeable future. His sentiments were echoed by the Organisation for Economic Cooperation and Development (OECD), which warned that central banks should ensure inflation was fully under control before thinking about cutting rates. However, positive data from the US economy and strong trading reports from major technology firms around the world helped boost market sentiment as the week progressed.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.2% up for the week so far. Meanwhile, the S&P 500 gained 0.8% to reach a record high and come within a whisker of breaching the 5,000-point mark. The S&P’s recent gains have been based mainly on the success of the technology giants, and this week was no exception. Recent statistics demonstrated continued resilience in the US services sector and the country’s labour market, with initial unemployment claims showing a surprising fall. However, signs of a further easing of price pressures helped calm fears that the Fed could keep rates at their current high level for longer than expected.

UK

In the UK, the FTSE 100 closed on Thursday 0.3% down for the week so far after a senior Bank of England official warned of the risks facing the economy. Britain’s lack of major technology companies meant the London market missed out on much of the sector’s advances, while a downbeat earnings report from a major pharmaceutical company also hit sentiment later in the week. Latest figures showed continued weakness in consumer spending and a rise in missed mortgage repayments. However, confidence in the construction sector rose as data showed another monthly rise in property prices.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.3% for the week, while France’s CAC 40 gained 1%. Shares in Europe benefited from strong company earnings reports and news that Chinese authorities were planning further stimulus measures. Meanwhile, sub-par economic data from the eurozone make an early European Central Bank interest rate cut increasingly likely. Recent statistics suggested Germany’s services sector had contracted again in January, while growth in the country’s construction and manufacturing sectors also remains sluggish.

Asia

In Asia, the Hang Seng index in Hong Kong gained 2.2% following news on Tuesday that China’s premier, Xi Jinping, was considering measures aimed at shoring up the country’s stock markets following recent heavy losses. A day later it was reported that the government had sacked the head of China’s securities regulator. In economic news, however, the consumer prices index fell at its fastest rate in 15 years last month. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 2% due to gains in technology stocks and further signs that the Bank of Japan has little intention of tightening monetary policy soon.

February 2
February 8
Change (%)
FTSE 100
7615.5
7595.5
-0.3
FTSE 250
19172.6
19102.7
-0.4
S&P 500
4958.6
4997.9
0.8
Dow Jones
38654.4
38726.3
0.2
DAX
16918.2
16963.8
0.3
CAC 40
7592.3
7665.6
1.0
ACWI
740.5
745.1
0.6
Hong Kong Hang Seng
15533.6
15878.1
2.2
Nikkei 225
36158.0
36863.3
2.0

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 8 February 2024.

 

9 February 2024
Bio photo of Tochi Nwozuzu
Tochi Nwozuzu
Content Marketing Executive
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 – 9 February 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.

Related Insights

23 February 2024

Tochi Nwozuzu

Content Marketing Executive

Market Monitor – 23 February 2024

Stock markets around the world enjoyed a buoyant week as investors focused on the potential for technological advances to drive growth, regardless of wider macroeconomic conditions.
Read time - 3 min
20 February 2024

Julian Cane

Portfolio Manager, CT UK Capital and Income Investment Trust

A pivotal year is impending  

As more than 70 countries go to the polls, the march of AI gathers momentum and interest rates, finally, come down, 2024 heralds a pivotal year.
Read time - 3 mins
16 February 2024

Tochi Nwozuzu

Content Marketing Executive

Market Monitor – 16 February 2024

Global stock markets edged ahead during a turbulent week marked by the publication of contrasting economic data.
Read time - 3 min
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 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.

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