{"id":1968,"date":"2020-05-19T10:21:33","date_gmt":"2020-05-19T10:21:33","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=1968"},"modified":"2020-11-18T10:11:32","modified_gmt":"2020-11-18T10:11:32","slug":"market-update-19th-may-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/05\/19\/market-update-19th-may-2020\/","title":{"rendered":"Market Update \u2013 19th 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\/4IUOIX88hkY?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>A week may be a long time in politics, but it is an eternity for equity markets.<\/p>\n<p>Reports yesterday (18 May 2020) that the US biotechnology company, Moderna, had promising results on a coronavirus vaccine set equities alight:\u00a0 the FTSE-100 ended yesterday up nearly 250 points, or 4.29%, while on Wall Street, the Dow Jones jumped just over 900 points, or 3.85%, while the broader S&amp;P 500 index climbed 3.15% \u2013 which more than reversed all of last week\u2019s losses.<\/p>\n<p>Although Moderna\u2019s vaccine news is not a complete game changer due to its small sample size (phase 1 trial involved just 45 people), it does highlight how hard and quickly the pharmaceutical industry is working and that a vaccine is probably not too far away \u2013 and of course, a vaccine will speed up the economic recovery.<\/p>\n<p>Unfortunately, the FTSE-100 is trading around 0.5% lower this morning:\u00a0 although today\u2019s UK employment data saw the headline unemployment number fall slightly to 3.9% in the three months to the end of March as there was a 210,000 increase in the number of people employed, the reading only captured 9 days of the lockdown.<\/p>\n<p>The benefit claims data provides a better indication (albeit only slightly) of the current economic deterioration:\u00a0 claims for universal credit rose by a record 856,000 in April to more than 2m.\u00a0 However, this data release doesn\u2019t necessary reflect a jump in unemployment as the government changed the benefits system, due to the coronavirus outbreak, to allow workers to claim if their income had dropped due to the virus.<\/p>\n<p>While it is obvious that the government furlough scheme has prevented unemployment from jumping, unfortunately it is highly likely that we will see unemployment start to rise during Q2 as the scheme begins to wind down.<\/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>A week may be a long time in politics, but it is an eternity for equity markets. Reports yesterday (18 May 2020) that the US biotechnology [&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\/1968"}],"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=1968"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1968\/revisions"}],"predecessor-version":[{"id":2184,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1968\/revisions\/2184"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=1968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=1968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=1968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}