Market Monitor – 17 November 2023
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Market Monitor – 17 November 2023

Global stock markets have extended their November gains after latest data showed welcome falls in inflation on both sides of the Atlantic

With price rises in the United States and UK slowing more rapidly than expected, the likelihood of central banks being forced to keep interest rates higher for longer has receded, providing a boost for share prices. Meanwhile, signs that growth in the world’s largest economies is proving relatively resilient in the face of high costs and tight monetary policy has raised investors’ hopes of a “soft landing” following the tumult of recent years.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.9% up for the week so far, with the S&P 500 advancing 2.1%. Shares in the US surged on Tuesday after official figures showed the annual rate of inflation had dipped to 3.2% in October – a steeper fall than analysts had forecasted. Markets are now expecting the Federal Reserve to cut interest rates as early as next May. Meanwhile, investors also reacted positively to the news that the House of Representatives had agreed a bill to avoid a government shutdown later this month, heading off another potential crisis.

UK

In the UK, the FTSE 100 closed on Thursday 0.7% up for the week so far. Inflation dropped sharply to 4.6% in October thanks mainly to a dramatic fall in the price of energy when compared with the same month in 2022. However, there were further signs that the UK economy is struggling to cope with high costs and elevated interest rates. Average house prices are reportedly falling at their fastest rate in five years, while insolvencies in England and Wales were up 18% in October on a year-on-year basis. Research suggests private-sector confidence had fallen to its lowest level this year.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 3.6% for the week, while France’s CAC 40 gained 1.8%. Investors in Europe welcomed the news that the cost of gas was falling due to declining oil prices and the restoration of production at a major facility in the Middle East. Eurozone GDP was reported to have edged 0.1% lower in the third quarter, while the European Commission revised its growth forecast for the bloc lower. However, the prospect of interest rate cuts saw business sentiment improve in Germany.

Asia

In Asia, the Hang Seng index in Hong Kong gained 3.7% thanks partly to data showing a rise in industrial production in China and a larger-than-expected rise in retail sales last month. The summit between Chinese leader, Xi Jinping, and US president, Joe Biden, raised hopes of an improvement in relations between the two countries, a development that could have positive implications for trade. Japan’s Nikkei 225 index of leading shares advanced 2.6%, meanwhile, following positive news from China and the US. In addition, data showing the Japanese economy had contracted faster than expected in between July and September raised hopes of further stimulus measures from the Tokyo government.

10 November
16 November
Change (%)
FTSE 100
7360.6
7411.0
0.7
FTSE 250
17853.1
18351.5
2.8
S&P 500
4415.2
4508.2
2.1
Dow Jones
34283.1
34945.5
1.9
DAX
15234.4
15786.6
3.6
CAC 40
7045.0
7168.4
1.8
ACWI
666.3
683.6
2.6
Hong Kong Hang Seng
17203.3
17832.8
3.7
Nikkei 225
32568.1
33424.4
2.6

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 16 November 2023.

17 November 2023
Jim Griffin
Investment Content Manager
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Market Monitor – 17 November 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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