Market Monitor – 28 April 2023
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Market Monitor – 28 April 2023

Global stock markets have struggled to make significant headway this week, although early losses were recovered to some extent – thanks to a rally on Thursday

The re-emergence of concerns about the resilience of the United States’ banking system on Monday and Tuesday created nervousness among investors. Meanwhile, recent data indicated that activity in some of the world’s largest economies remains under considerable pressure from high inflation and tight monetary policies. However, a number of upbeat company earnings statements later in the week helped markets stage a partial recovery.

United States

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 0.1% up for the week so far, with the S&P 500 finishing level with last Friday’s close. There was much to concern investors in the US this week: Treasury secretary, Janet Yellen, warned on Tuesday that the American economy was likely to be damaged if lawmakers in Washington DC were unable to agree on raising the government’s debt ceiling in the coming weeks, while data published on Thursday showed that US GDP had increased by just 1.1% in the first three months of the year. However, bullish trading statements from some of the world’s biggest technology businesses later in the week helped to calm nerves.

UK

In the UK, the FTSE 100 closed on Thursday 1% lower for the week so far, with softening commodities prices continuing to hold the index back. There were some bright spots, including better-than-expected results from major banks, and latest figures suggesting retail sales had recovered to some extent in April. However, reports of a new round of fresh-produce shortages raised fears of further price rises, while the Bank of England attempted to encourage wage restraint among workers and employers as it battles to bring inflation under control.

Europe

In Frankfurt, the DAX index ended Thursday’s session 0.5% down for the week, while France’s CAC 40 lost 1.2%. European banking sector shares declined following the jitters in the US, while uncertainty continues to surround the forthcoming interest rate decision from the European Central Bank. The size of its next rate hike is likely to depend on how far inflation has fallen in April, with figures for the individual eurozone nations as well as the bloc as a whole due to be published over the next few days.

Asia

In Asia, the Hang Seng index in Hong Kong dipped 1.2%, extending recent losses as investors remained concerned about the pace of the post-pandemic economic recovery – and the likelihood of further government stimulus measures. However, technology stocks performed well following the positive news from the US, while there were gains among insurance company shares after solid earnings reports from the sector. Japan’s Nikkei 225 index of leading shares fell back 0.4%, despite having hit an eight-month high earlier in the week thanks to the strength seen among semiconductor and motor manufacturers.

21 April
27 April
Change (%)
FTSE 100
7914.1
7831.6
-1.0
FTSE 250
19270.0
19248.0
-0.1
S&P 500
4133.5
4135.4
0.0
Dow Jones
33809.0
33826.2
0.1
DAX
15881.7
15800.5
-0.5
CAC 40
7577.0
7483.8
-1.2
ACWI
652.6
650.5
-0.3
Hong Kong Hang Seng
20075.7
19840.3
-1.2
Nikkei 225
28564.4
28457.7
-0.4

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 27 April 2023.

28 April 2023
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Market Monitor – 28 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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