Ian Copelin, Investment Director, my wealth comments <\/b>\u201cUS data yesterday showed the US economy grew more than previously estimated in the second quarter due to consumer and business spending.\u00a0 US GDP rose at a revised annualised rate of 3.7% (up from the initial estimate of 2.3% reported last month) exceeding economists\u2019 estimates.<\/p>\n
US equities rose on the news, with the Dow Jones closing up 369.26 points, or 2.27%, at 16,654.77.\u00a0 The index has now recouped 988.33 points in the last two days \u2013 more than half the losses it sustained in the past two weeks, after China decided to devalue its currency.\u00a0 Likewise, the S&P 500, having risen 3.9% on Wednesday, climbed a further 2.43% yesterday – resulting in the index having its biggest two-day rise since 2009.\u00a0 Consequently, both indices are now showing gains on the week!<\/p>\n
The market was also encouraged by a rebound in the Chinese stock market and comments from William Dudley, president of the New York Federal Reserve Bank.<\/p>\n
In China, the Shanghai Composite Index rose 5.34% on Wednesday, its first gain in six days.\u00a0 The Shanghai Composite Index rose a further 4.82% overnight.\u00a0 While the index is still down 37.42% since its high on 12 June, it is down just 0.09% since the start of the year and up 47.31% over the past 12 months.<\/p>\n
William Dudley said that while it was \u201cimportant not to overreact to short-term market developments\u201d, \u00a0the case for a US interest rate rise, the first in nearly a decade, at the next Federal Open Market Committee (FOMC) meeting in September was now “less compelling” given China\u2019s economic slowdown and the fall in oil prices.<\/p>\n
In the UK, the FTSE-100 is currently down 3 points on the day at 6,189 \u2013 and up 1.5 points on the week.\u201d<\/p>\n ","protected":false},"excerpt":{"rendered":"
US data yesterday showed the US economy grew more than previously estimated.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"_links":{"self":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/117"}],"collection":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/comments?post=117"}],"version-history":[{"count":1,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/117\/revisions"}],"predecessor-version":[{"id":118,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/117\/revisions\/118"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}