{"id":1976,"date":"2020-05-27T10:23:29","date_gmt":"2020-05-27T10:23:29","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=1976"},"modified":"2020-11-18T10:03:40","modified_gmt":"2020-11-18T10:03:40","slug":"market-update-27th-may-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/05\/27\/market-update-27th-may-2020\/","title":{"rendered":"Market Update \u2013 27th 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\/5n8ZW05BcoI?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>US equity markets opened up strongly yesterday (26 May 2020) and at one point the Dow Jones traded above 25,000 for the first time since 10 March 2020, while the S&amp;P 500 index crossed the 3,000 level for the first time since 5 March 2020 as US consumer confidence stabilised after two months of sharp declines, while Jamie Dimon, the Chairman and CEO of JPMorgan Chase, stated that the US economy will see a fast economic rebound starting in Q3.<\/p>\n<p>This confirms what we have long argued: \u00a0the coronavirus outbreak is a transient issue and that global economic growth and company profits will only be temporarily impaired and as a result, while the economic shock will be sharp and painful it will also be short with an economic recovery towards the end of the year (i.e. a V-shaped economic recovery).<\/p>\n<p>In addition, pharmaceutical company Merck and the biotechnology company Novavax both gave updates on their coronavirus vaccine developments \u2013 as we have previously stated there are lots of companies around the world working on a vaccine and given the number of shots being taken at the goal, the chances of a breakthrough is probably not too far away \u2013 and of course, a vaccine will speed up the economic recovery.<\/p>\n<p>However, these early gains were almost cut in half during the last hour of trading (8-9pm UK time) after it was reported that Donald Trump is considering sanctions on Chinese officials over Hong Kong\u2019s proposed new security laws, suggesting the two countries are now on a collision course which could negatively impact trade at an important and sensitive time for the global economic recovery.<\/p>\n<p>Subsequently, the S&amp;P 500 index ended the day up 1.23% at 2,991.77, while the Dow Jones closed nearly 530 points higher, or 2.17% at 24,995.<\/p>\n<p>China\u2019s National People\u2019s Congress (NPC) is expected to vote tomorrow (Thursday 28 May 2020) on the new national security laws \u2013 which if implemented will erode the \u2018one country, two systems\u2019 policy and mark the beginning of the end for Hong Kong\u2019s status as an autonomous territory and important financial centre.<\/p>\n<p>Consequently, overnight both Chinese and Hong Kong equity markets have fallen:\u00a0 China\u2019s CSI 300 index fell 0.70%, while Hong Kong\u2019s Heng Seng index has just closed (9am UK time) down 0.38%.<\/p>\n<p>As for this morning, the FTSE-100 is looking past these escalating US\/China tensions and is again focusing on the economic data that suggests that the worst of the economic damage caused by the coronavirus outbreak and associated lockdowns has passed \u2013 and as we write, the FTSE-100 is up around 60 points or 1%.<\/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>US equity markets opened up strongly yesterday (26 May 2020) and at one point the Dow Jones traded above 25,000 for the first time since 10 [&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\/1976"}],"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=1976"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1976\/revisions"}],"predecessor-version":[{"id":2180,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/1976\/revisions\/2180"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=1976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=1976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=1976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}