Market Monitor – 17 September 2021

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Market Monitor – 17 September 2021

Stock markets around the world have had another volatile week, with concerns about the difficult post-Covid recovery to the fore once again. Most major indices have, however, managed to avoid serious losses – with the notable exception of bourses in China, where a slew of negative economic and political news has spooked investors.

Asia

Reports on Monday indicated that Chinese authorities were planning to break up Ant Group’s online payments service Alipay while also bringing some of Ant’s operations under state control. This move is the latest in a string of recent direct market interventions by the Beijing government.
Meanwhile, the crisis at property giant Evergrande continues: the company is currently struggling to service its $300 billion debt pile and on Thursday it applied to halt trading in its corporate bonds after yet another ratings downgrade.
With Chinese economic data also coming in short of expectations later in the week, the Hang Seng index in Hong Kong closed Thursday’s session almost 6% lower for the week, dropping back to its weakest level in nearly a year. In Europe and North America, meanwhile, markets showed little sign of being affected by the turmoil in the Far East.

The US

Data continues to highlight the problems facing many businesses as they try to cope with rising demand in the face of serious stock and materials shortages and supply chain disruption. However, a surprise fall in inflation in the United States last month provided more support for the Federal Reserve’s contention that higher prices are likely to be a short-lived phenomenon – and that an imminent tightening of monetary policy will therefore be unnecessary.
On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.4% up for the week so far, while the S&P 500 closed 0.3% higher. US retail sales for August also came in better than expected, while it was reported that import prices fell last month for the first time this year.

The UK & Europe

In the UK, the FTSE 100 closed on Thursday level for the week. Official figures published on Tuesday highlighted the struggles many businesses are facing in recruiting staff, with vacancies across every sector of the economy higher this quarter than in the previous three-month period.
Indications from ministers that they are planning to relax Britain’s strict rules on international travel helped send airline shares higher, while a rise in the oil price later in the week provided a boost for the likes of Shell and BP.
In Frankfurt, the DAX index ended Thursday’s session up 0.3% for the week, while France’s CAC 40 lost 0.6%. A recent spike in the price of natural gas across Europe is causing significant concern in both the UK and across the eurozone. Rising costs have prompted a number of energy-intensive manufacturing businesses, such as fertiliser producers, to suspend operations: a continent-wide lack of fertiliser is likely only to add to the supply-chain problems facing the European food industry at present.
September 10
September 16
Change (%)
FTSE 100
7029.2
7027.5
0.0
FTSE All-share
4056.2
4051.4
-0.1
S&P 500
4458.6
4473.8
0.3
Dow Jones
34607.7
34751.3
0.4
DAX
15609.8
15651.8
0.3
CAC 40
6663.8
6622.6
-0.6
ACWI
737.3
735.2
-0.3
Hong Kong Hang Seng
26205.9
24667.9
-5.9
Nikkei 225
30381.8
30323.3
-0.2
Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 16/9/2021.
17 September 2021
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Market Monitor – 17 September 2021

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 and relies on Class Order 03/1102 in marketing and providing financial services to Australian wholesale clients as defined in Section 761G of the Corporations Act 2001. 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 and relies on Class Order 03/1102 in marketing and providing financial services to Australian wholesale clients as defined in Section 761G of the Corporations Act 2001. 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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