Market Monitor – 28 June 2024
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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.

28 June 2024
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Market Monitor – 28 June 2024

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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.

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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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