{"id":2027,"date":"2020-07-09T11:12:40","date_gmt":"2020-07-09T11:12:40","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=2027"},"modified":"2020-11-18T09:40:44","modified_gmt":"2020-11-18T09:40:44","slug":"market-update-9th-july-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/07\/09\/market-update-9th-july-2020\/","title":{"rendered":"Market Update \u2013 9th July 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\/cNJH_dbhW_U?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>In the UK this morning, the FTSE-100 has drifted lower, ahead of this afternoon\u2019s important weekly US jobless claims data.\u00a0 As we write, the FTSE-100 is down around 25 points, or 0.40% \u2013 although around a third of this decline is due to the aero-engine manufacturer, Rolls-Royce (which is not held in client portfolios), as their shares have fallen almost 9% this morning following a trading update.<\/p>\n<p>Adding to this UK negativity is a stronger pound (it has this morning strengthened to $1.265) \u2013 with around two-thirds of the FTSE-100\u2019s total revenue derived from abroad, a strong pound is bad for the FTSE-100 as it lowers returns for exporters and the value of overseas earnings.<\/p>\n<p>This follows yesterday\u2019s Summer Economic Update from the Chancellor of the Exchequer, Rishi Sunak.\u00a0 As we wrote yesterday (<a href=\"https:\/\/www2.wealthatwork.co.uk\/mywealth\/2020\/07\/08\/market-update-8th-july-2020\/\"><strong>please see here<\/strong><\/a>), the statement wasn\u2019t particularly substantial, more of a stop-gap until the more important Autumn Statement (which comes just after the furlough scheme has ended and we approach the end of the Brexit transition period).\u00a0 As a consequence, we believe that this will force the BoE into further monetary stimulus \u2013 potentially via negative UK interest rates.<\/p>\n<p>Elsewhere, it was yet another positive day for China\u2019s CSI 300 index.\u00a0 It closed this morning up a further 1.40% \u2013 taking its run of consecutive up days to 8 and brings its July\u2019s gain to a whopping 16.25%.\u00a0 While it may appear a little exuberant, we have recently had some very encouraging economic data from China (the world\u2019s second largest economy), which provides clear evidence that their economy continues to recover.<\/p>\n<p>This, coupled with yesterday\u2019s strong US mortgage applications data (which clearly suggested that Americans aren\u2019t concerned about unemployment or coronavirus risks), underscores our expectations for a V-shaped economic recovery.<\/p>\n<p>As we mentioned earlier, today\u2019s market focus and economic calendar is dominated by the US weekly jobless claims \u2013 which we will update you about in tomorrow\u2019s commentary.<\/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>In the UK this morning, the FTSE-100 has drifted lower, ahead of this afternoon\u2019s important weekly US jobless claims data.\u00a0 As we write, the FTSE-100 is [&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\/2027"}],"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=2027"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2027\/revisions"}],"predecessor-version":[{"id":2155,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2027\/revisions\/2155"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=2027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=2027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=2027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}