Market Monitor – 21 April 2023
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Market Monitor – 21 April 2023

Global stock markets have experienced a mixed week as economic concerns and downbeat company trading statements have acted to limit gains

There are growing signs that the tighter monetary policy that has been ongoing in developed nations since early 2022 is starting to have a clear impact on business activity: unemployment rates are on the rise on both sides of the Atlantic, while several major corporations have this week warned of potentially turbulent trading conditions in the months ahead.

A possible silver lining of these developments is the likelihood that central banks, in the UK and United States in particular, will soon have no choice but to bring their programmes of interest rate rises to a halt – even though inflation has not yet been brought under control. Looser monetary policy could help stimulate economic activity again, but at the risk that price rises will start to accelerate once more.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.3% down for the week so far, with the S&P 500 dropping back 0.2%. First-quarter earnings reports have done little to lift spirits in recent days, with underwhelming statements from the banking sector and a worrying set of figures from one of the country’s most highly valued carmakers. Meanwhile, a rise in the weekly jobless figures and disappointing manufacturing data have added to the pressure on the Federal Reserve to leave interest rates untouched at its May meeting.

UK

In the UK, the FTSE 100 closed on Thursday 0.4% up for the week so far, despite a fall in commodity prices as concerns about global growth in 2023 re-emerged. Gains in London were also limited by a rise in unemployment and inflation figures which showed UK prices were continuing to increase at an annual rate above 10% – the highest level in Western Europe. However, solid earnings reports from major retailers and travel companies helped to keep the index in positive territory.

Europe

In Frankfurt, the DAX index ended Thursday’s session down 0.1% for the week, while France’s CAC 40 gained 0.3%, having hit a record high during Monday’s session. Investors in Europe remain worried that the European Central Bank will impose another 0.5 percentage point interest rate increase next month despite the recent dip in headline eurozone inflation. However, strong economic growth in China helped to support advances among businesses with exposure to markets in the Far East.

Asia

In Asia, the Hang Seng index in Hong Kong dipped 0.2% despite figures showing that Chinese GDP had increased at a faster rate than expected in the first three months of the year. Closer analysis indicated that the expansion had been uneven, with the lack of a sustained recovery in the property sector being a major concern. Technology stocks performed well on optimism about the potential of artificial-intelligence services to drive growth. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced 0.6% to continue their recent run of good form. Latest data showed a sharp rise in exports in March while retail stocks gained – thanks to the return of foreign visitors to the country.

14 April
20 April
Change (%)
FTSE 100
7871.9
7902.6
0.4
FTSE 250
19242.7
19135.9
-0.6
S&P 500
4137.6
4129.8
-0.2
Dow Jones
33886.5
33786.6
-0.3
DAX
15807.5
15796.0
-0.1
CAC 40
7519.6
7538.7
0.3
ACWI
654.6
653.1
-0.2
Hong Kong Hang Seng
20438.8
20397.0
-0.2
Nikkei 225
28493.5
28657.6
0.6

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 20 April 2023.

21 April 2023
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Market Monitor – 21 April 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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