{"id":2067,"date":"2020-08-13T11:22:49","date_gmt":"2020-08-13T11:22:49","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/?p=2067"},"modified":"2020-11-18T09:33:11","modified_gmt":"2020-11-18T09:33:11","slug":"market-update-13th-august-2020","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2020\/08\/13\/market-update-13th-august-2020\/","title":{"rendered":"Market Update \u2013 13th August 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\/JtvypHiBnX8?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>Yesterday\u2019s US CPI inflation came in higher than expected, with the headline rate rising from 0.6% in June to 1.0% in July, while the core reading, which excludes volatile items such as food and energy, came in at 1.6%, up from 1.2% in June.<\/p>\n<p>However, we do not believe that this is the start of a new inflationary wave which will cause the US Federal Reserve Bank (Fed) to start shifting to a hawkish stance (i.e. a tighter monetary policy environment), as inflation is still well below the Fed\u2019s 2% target.<\/p>\n<p>Additionally, and more importantly, inflation isn\u2019t the Fed\u2019s main focus right now \u2013 its focus is primarily on restoring US economic confidence and thus reducing unemployment (which currently stands at just over 10%).<\/p>\n<p>Furthermore, \u2018one strong reading does not a trend make\u2019: \u00a0despite its best intentions the Fed has consistently undershot its 2% inflation target for years, and given the current excess spare capacity in the US economy it is unlikely to start reaching it now.<\/p>\n<p>Later today we get the very important weekly US jobless claims data: \u00a0we are expecting both the initial and continuing claims to show a small decline as improving coronavirus data should have encouraged companies to rehire laid-off workers.<\/p>\n<p><strong>Investment Management<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n  <\/div> ","protected":false},"excerpt":{"rendered":"<p>Yesterday\u2019s US CPI inflation came in higher than expected, with the headline rate rising from 0.6% in June to 1.0% in July, while the core reading, [&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\/2067"}],"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=2067"}],"version-history":[{"count":2,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2067\/revisions"}],"predecessor-version":[{"id":2134,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/2067\/revisions\/2134"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=2067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=2067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=2067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}