Market Monitor – 28 June 2024

Market Monitor – 28 June 2024

Global stock markets had a mixed week as investors wait for vital inflation data in the United States and the results of national elections in Europe

Cyclical stocks such as banks and energy companies have performed well as the artificial intelligence-driven technology rally pauses for breath. But considerable uncertainty continues to surround the timing of the Federal Reserve’s next move on interest rates, with one policymaker raising the possibility of an increase should indicators suggest inflation remains a problem. The publication of US personal consumption expenditures data – the Fed’s preferred measure of price rises – is expected to bring clarity, with investors hoping a weaker-than-expected reading will lay the groundwork for a rate cut in September.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday flat for the week so far, with the S&P 500 edging 0.3% ahead. The week began with further falls in stocks linked to the recent AI boom, and the technology sector was also hit by news of regulatory action in Europe against two of America’s largest software companies. Revised GDP data showed the US economy had grown slightly faster than previously thought in the first three months of the year, although more recent figures showed a decline in factory goods orders.

UK

In the UK, the FTSE 100 closed on Thursday 0.7% down for the week so far. This came after the Bank of England issued a warning that financial markets could face a “sharp correction” later this year due to the fallout from global elections, rising levels of risk in private equity firms, and the continued impact of higher borrowing costs. Ahead of next week’s general election, meanwhile, economists warned about the fragile state of Britain’s public finances. Latest data showed a surprise fall in retail sales in June as well as signs of cooling in the UK labour market.

Europe

In Frankfurt, the DAX index ended Thursday’s session up 0.2% for the week, although France’s CAC 40 fell 1.3%. Investors in Paris are nervously awaiting the results of the first round of national elections that take place on Sunday, although the week had begun on a more upbeat note as yields on French bonds eased back from recent peaks. News of a profit warning from one of France’s largest manufacturing companies added to the gloom.

Asia

In Asia, the Hang Seng index in Hong Kong fell 1.7% after data showed a decline in industrial profits, casting further doubt on China’s ability to stage a sustained recovery in 2024. Stocks had risen earlier in the week on hopes of further interest rate cuts. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 1.9% following further falls in the value of the yen – the weaker currency increases the relative value of Japanese companies’ international earnings, driving market gains. The yen’s recent decline has been caused by high interest rates in the US combined with expectations that the Bank of Japan will find it difficult to tighten monetary policy due to sluggish domestic growth.

June 21
June 27
Change (%)
FTSE 100
8237.7
8179.7
-0.7
FTSE 250
20442.4
20331.8
-0.5
S&P 500
5464.6
5482.9
0.3
Dow Jones
39150.3
39164.1
0.0
DAX
18163.5
18205.4
0.2
CAC 40
7628.6
7530.7
-1.3
ACWI
801.3
803.8
0.3
Hong Kong Hang Seng
18028.5
17716.5
-1.7
Nikkei 225
38596.5
39341.5
1.9

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 27 June 2024.

Read time - 3 min
28 June 2024
Share on linkedin
Share on email
Share on print

Latest articles

Global stock markets had a difficult week, with technology stocks in particular giving up some of their recent gains.
Global stock markets had a difficult week, with technology stocks in particular giving up some of their recent gains.
Global stock markets surged ahead this week as the prospect of an interest rate cut in the United States grows ever closer.

How to make your choice

Only once you turn 18 you are able to make a decision on your account. If you’re ready to make a decision you can do so by downloading our CTF Election form. Simply fill it in and send it back to us whatever you decide to do. Download the form using the button below.

Woman with a laptop