{"id":1962,"date":"2020-05-13T10:19:38","date_gmt":"2020-05-13T10:19:38","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=1962"},"modified":"2020-11-18T10:36:43","modified_gmt":"2020-11-18T10:36:43","slug":"market-update-13th-may-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/05\/13\/market-update-13th-may-2020\/","title":{"rendered":"Market Update \u2013 13th May 2020"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><div class=\"vc_row wpb_row vc_row-fluid\">\n<div class=\"wpb_column vc_column_container vc_col-sm-12\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_raw_code wpb_content_element wpb_raw_html\">\n<div class=\"wpb_wrapper\"><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/67RZ5OlrA7Y?rel=0&amp;wmode=transparent\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"vc_row wpb_row vc_row-fluid\">\n<div class=\"wpb_column vc_column_container vc_col-sm-12\">\n<div class=\"vc_column-inner \">\n<div class=\"wpb_wrapper\">\n<div class=\"wpb_text_column wpb_content_element \">\n<div class=\"wpb_wrapper\">\n<p>The FTSE-100 has opened around 1% lower this morning after US equity markets fell in the last hour of trading yesterday (12 May 2020).<\/p>\n<p>The Dow Jones ended the day down 457 points, or 1.89%, while the broader S&amp;P 500 index fell 2.05%.<\/p>\n<p>US equities fell after Anthony Fauci, America\u2019s infectious disease official, said that the US would see an increase in coronavirus cases if the US economy reopens prematurely, coupled with news that a US senator proposed a bill that would allow Donald Trump to impose sanctions on China if they did not cooperate with the investigation into the coronavirus outbreak.<\/p>\n<p>It has also been a busy two days on the data front.<\/p>\n<p>Yesterday\u2019s (12 May 2020) US CPI data showed that inflation fell 0.8% in April, reducing the annual inflation rate to just 0.3%.\u00a0 The core rate (which excludes volatile items such as food and energy), fell 0.4%, its biggest monthly fall on record, and in the process reduced the annual rate to 1.4%, its slowest rate since April 2011.<\/p>\n<p>Among the biggest contributors to the decline were fuel prices, airfares and clothing, which fell 20.6%, 15.2% and 4.7% respectively.\u00a0 However, food prices rose 2.6% and household paper products increased 4.5% as Americans stocked up.<\/p>\n<p>In the UK, GDP data showed that the economy contracted by 5.8% in March and by 2% in Q1.<\/p>\n<p>Although this was slightly better than expected, it is just the tip of the iceberg as the lockdown only officially started a week before the end of March \u2013 and given the current lockdowns, we wouldn\u2019t be surprised if Q2 GDP contracts by 25 or 30%, especially as the British Retail Consortium said this morning that sales fell by 19.1% in April compared to April 2019, while Barclaycard said that its measure of consumer spending fell 36.5% \u2013 and the consumer accounts for around two-thirds of UK economy.<\/p>\n<p>However, neither of these sales readings are surprising given most of the high street is closed:\u00a0 Associated British Foods (the owner of Primark), recently said the closure of all its shops is costing \u00a3650m in lost sales per month, while Next recently said its full-price sales fell by 41% in the three months to 25 April 2020.<\/p>\n<p><strong>Investment Management Team<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n  <\/div> ","protected":false},"excerpt":{"rendered":"<p>The FTSE-100 has opened around 1% lower this morning after US equity markets fell in the last hour of trading yesterday (12 May 2020). The Dow [&hellip;]<\/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\/1962"}],"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=1962"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1962\/revisions"}],"predecessor-version":[{"id":2187,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1962\/revisions\/2187"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=1962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=1962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=1962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}