Market Monitor - 13 August 2021
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Market Monitor – 13 August 2021

Global stock markets have made steady progress this week: while there is still no sign of an imminent tightening of monetary policy by any of the major central banks, concerns over the spread of the Delta coronavirus variant continue to limit gains.
Fears are emerging in Europe and Asia that new lockdown policies may be required in the autumn – if not sooner – to address sharply rising infection rates, despite the vaccine roll-out. These worries have helped drive down oil prices over the past few days, and the global energy sector has also been hit by renewed warnings from the United Nations about the potential impact of unchecked climate change.

The US

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 12 August 0.8% up for the week so far, with the S&P 500 gaining 0.5%. Stocks in the US rose to record highs on Wednesday on the news that the latest set of infrastructure spending plans put forward by President Biden had been given the green light by lawmakers in the Senate.
Investors were also buoyed by the news that core inflation appears to be easing in the US – suggesting the Federal Reserve will be less likely to unwind stimulus measures in the near future. However, the picture was muddied by data published on Thursday 12 showing that the prices charged by producers to end users were rising by the fastest annual rate in more than a decade.

Europe

In the UK, the FTSE 100 ended Thursday 12 August 1% ahead for the week with coronavirus infections remaining steady following last month’s surge. The latest data from the Office for National Statistics showed the British economy grew by almost 5% in the second quarter of 2021, beating analysts’ expectations.
In London, shares in energy companies struggled as the oil price fell, while property investors and construction firms also slipped back – the end of the stamp duty holiday is expected to limit gains in the housing market in the coming months.
In Frankfurt, the DAX index ended Thursday’s session 1.1% ahead for the week, while France’s CAC 40 also closed in the black, gaining 1%. German exports were reported on Monday 9 August to have continued their recent climb, despite the ongoing supply-chain issues hampering the country’s manufacturing sector.
Across the eurozone, however, investor optimism has gone into reverse over fears that new restrictions will have to be implemented in the next few months in order to curb the spread of the Delta variant.

Asia

In Asia, the Hang Seng index in Hong Kong finished 1.3% up for the week at Thursday’s close, while Japan’s Nikkei 225 index of shares gained 0.7%. Growth in China is at risk of being curtailed by the Delta variant, with travel restrictions now in place to limit the spread of infections. However, this makes it increasingly unlikely that central bankers in Beijing will remove stimulus measures in the short term.
Japan’s SoftBank, meanwhile, has announced plans to scale back its investments in technology startups in China following the recent crackdown on the sector by the Chinese government.
Aug 6
Aug 12
Change (%)
FTSE 100
7123.0
7193.2
1.0
FTSE All-share
4088.9
4131.8
1.0
S&P 500
4436.5
4460.8
0.5
Dow Jones
35208.5
35499.9
0.8
DAX
15761.5
15937.5
1.1
CAC 40
6817.0
6882.5
1.0
ACWI
731.2
734.8
0.5
Hong Kong Hang Seng
26179.4
26517.8
1.3
Nikkei 225
27820.0
28015.0
0.7

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 12/8/2021.

13 August 2021
Jim Griffin
Investment Content Manager
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Market Monitor – 13 August 2021

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Past performance is not a guide to future performance. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. Your capital is at risk.

The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable, but its accuracy or completeness cannot be guaranteed.

Any opinions expressed are made as at the date of publication but are subject to change without notice. This presentation includes forward looking statements, including projections of future economic and financial conditions. None of Columbia Threadneedle Investments, its directors, officers or employees make any representation, warranty, guaranty, or other assurance that any of these forward-looking statements will prove to be accurate.

The mention of any specific shares or bonds should not be taken as a recommendation to deal.

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.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

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Important information

This is an advertising document.

Past performance is not a guide to future performance. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. Your capital is at risk.

The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable, but its accuracy or completeness cannot be guaranteed.

Any opinions expressed are made as at the date of publication but are subject to change without notice. This presentation includes forward looking statements, including projections of future economic and financial conditions. None of Columbia Threadneedle Investments, its directors, officers or employees make any representation, warranty, guaranty, or other assurance that any of these forward-looking statements will prove to be accurate.

The mention of any specific shares or bonds should not be taken as a recommendation to deal.

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.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

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