Market Monitor – 9 December 2022
Insights

Market Monitor – 9 December 2022

Global stock markets have given up some of their recent gains this week due to increasing worries about inflation and declining growth.

The cautious optimism of the past few weeks had been based on hopes that receding inflation would lead to slower interest rate rises. But investors are becoming increasingly worried that wage increases could fuel renewed price rises, forcing central banks to take more concerted action. At the same time there is considerable uncertainty about the medium-term impact of tighter monetary policy, with many analysts now forecasting prolonged recessions in some of the world’s biggest economies.

There was some positive news this week, however, in the shape of an apparent U-turn by Chinese authorities on the country’s zero-Covid policy. After a series of strict recent lockdowns prompted widespread protests, the Beijing government has relaxed its quarantine rules, raising hopes that China’s economy will be able to begin a sustained recovery from the pandemic.

US markets

On Wall Street, the Dow Jones Industrial Average ended trading on Thursday 1.9% down for the week so far, with the S&P 500 losing 2.7%. Data published at the end of last week showing a spike in average earnings in the US raised fears that the Federal Reserve may need to keep its foot on the accelerator when it meets to set interest rates later in December. At present, the consensus is that the Fed will hike rates by 50 basis points but some economists are now predicting a more substantial increase. A major US investment bank published forecasts suggesting the American economy may enter recession by mid-2023.

Europe

In the UK, the FTSE 100 closed on Thursday 1.1% down for the week with latest data highlighting continued weakness in Britain’s construction sector. House prices, meanwhile, fell at their fastest pace in more than a decade in October, another demonstration of the effect of rising interest rates. A series of national rail strikes planned over December are expected to have a significant impact on the UK’s beleaguered hospitality sector, with many companies reportedly cancelling parties over the festive period as a result.

In Frankfurt, the DAX index ended Thursday’s session down 1.8% for the week, while France’s CAC 40 lost 1.4%. A cold snap across Europe put upward pressure on gas prices, prompting fears of renewed inflationary pressures as well as possible energy shortages over the coming months. However, there was positive news in the shape of a reported rise in orders in German factories in October, raising hopes that any eurozone recession could be short-lived.

Asia

In Asia, the Hang Seng index in Hong Kong rose 4.1% in another highly volatile week. News of the Chinese government’s rethink of its approach to Covid-19 drove significant gains early in the week. The impact of zero-Covid was laid bare by news that China’s imports and exports had fallen last month at their fastest rate since the start of the pandemic. Japan’s Nikkei 225 index of leading shares, meanwhile, advanced on the China’s reopening before falling back as a result of inflation and interest-rate fears emanating from the US.

2 December
8 December
Change (%)
FTSE 100
7556.2
7472.2
-1.1
FTSE All-Share
4138.8
4082.2
-1.4
S&P 500
4071.7
3963.5
-2.7
Dow Jones
34429.9
33781.5
-1.9
DAX
14529.4
14264.6
-1.8
CAC 40
6742.3
6647.3
-1.4
ACWI
633.5
620.4
-2.1
Hong Kong Hang Seng
18675.4
19450.2
4.1
Nikkei 225
27777.9
27574.4
-0.7

Note: all market data contained within the article is sourced from Bloomberg unless stated otherwise, data as at 8 December 2022.

12 December 2022
Share article
Share on linkedin
Share on email
Key topics
Related topics
Listen on Stitcher badge
Share article
Share on linkedin
Share on email
Key topics
Related topics

PDF

Market Monitor – 9 December 2022

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.

Related Insights

1 December 2023

Market Monitor – 1 December 2023

Global stock markets ended a strong month on a generally positive note as investors continue to hope that central banks will soon be able to start cutting interest rates.
Read time - 3 min
24 November 2023

Market Monitor – 24 November 2023

Global stock markets held on to their recent gains during what by recent standards has been a relatively uneventful week.
Read time - 3 min
17 November 2023

Market Monitor – 17 November 2023

Global stock markets have extended their November gains after latest data showed welcome falls in inflation on both sides of the Atlantic.
Read time - 3 min
true
true

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.

You may also like

Investment approach

Teamwork defines us and is fundamental to our investment approach, which is structured to facilitate the generation, assessment and implementation of good, strong investment ideas for our portfolios.

Investing with us

Learn how and why you should invest with us at Columbia Threadneedle Investments.

Contact

For more information about Columbia Threadneedle Investments or our products please contact your adviser or our Client Service Desk here.