Market Monitor – 15 September 2023
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Market Monitor – 15 September 2023

Global stock markets have made steady progress this week on hopes that central banks are near the end of their interest rate raising programmes

Efforts by officials in China to stimulate the country’s flagging economy have also boosted sentiment. While the latest inflation data from the United States showed an uptick in the headline rate of price rises, the core measure of inflation – which excludes more volatile elements such as energy costs – declined. As the Federal Reserve tends to focus more on the latter figure when making monetary policy decisions, this news was welcomed by investors.

Oil prices continued to rise, however, which could increase inflationary pressures around the world in the months ahead. In addition to recent production cuts imposed by Saudi Arabia and Russia, this week’s devastating floods in Libya are expected to also have a significant impact on crude supplies.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1% up for the week so far, with the S&P 500 gaining 1.1%. While the consensus among investors is that the Fed is unlikely to raise rates in the short term, the latest fall in unemployment claims could increase the pressure on officials to take further action to cool the American labour market, despite the welcome drop in core inflation. A successful Nasdaq IPO by a UK-based semiconductor firm helped drive gains across the technology sector towards the end of the week.

UK

In the UK, the FTSE 100 closed 2.6% higher for the week so far, having enjoyed its best day of 2023 to date on Thursday as rising oil and commodity prices led to strength in energy and mining stocks. In particular, prices of precious metals benefited from hopes of faster Chinese growth. Recent data showed a rise in unemployment as well as an increase in wage inflation. Bank of England officials warned they may need to raise interest rates even further, despite government figures showing that the UK economy had shrunk by 0.5% in July. Poor summer weather was blamed for unexpectedly weak retail sales.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.4% for the week, while France’s CAC 40 gained 0.9%. As expected, the European Central Bank raised interest rates by 0.25% at its Thursday meeting. Data that highlighted weakness across the eurozone economy raised hopes that this could be ECB’s final hike in the current cycle. Officials now expect the German economy to shrink overall in 2023 as a result of the energy price shock caused by Russia’s invasion of Ukraine last year.

Asia

In Asia, the Hang Seng index in Hong Kong dipped 0.8%, with ongoing concerns about the vulnerability of China’s real estate sector stifling share price gains. There was welcome news late in Thursday’s session when the country’s central bank announced a reduction in capita -reserve requirements for Chinese lenders in a bid to boost the availability of finance to businesses and consumers. Japan’s Nikkei 225 index of leading shares advanced 1.7% as hopes rose that the Fed may cut interest rates sooner than previously expected.

8 September
14 September
Change (%)
FTSE 100
7478.2
7673.1
2.6
FTSE 250
18463.2
18899.7
2.4
S&P 500
4457.5
4505.1
1.1
Dow Jones
34576.6
34907.1
1.0
DAX
15740.3
15805.3
0.4
CAC 40
7240.8
7308.7
0.9
ACWI
678.0
685.6
1.1
Hong Kong Hang Seng
18202.1
18047.9
-0.8
Nikkei 225
32606.8
33168.1
1.7

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 14 September 2023.

15 September 2023
Bio photo of Tochi Nwozuzu
Content Marketing Executive
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Market Monitor – 15 September 2023

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.

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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.

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