Fisher Investments recaps the biggest market, political and economic news from last week, including US, UK, Eurozone, Japanese and Chinese March Services Purchasing Managers’ Index (PMI) readings, US trade data and eurozone unemployment.
In the US, the final March Markit Services Purchasing Managers Index (PMI) was revised higher to 60.4 from a previous estimate of 60.0—confirming the fourth consecutive monthly increase. Readings above 50 indicate expansion. February imports and exports declined 0.7% m/m and 2.6% m/m, respectively. February durable goods orders fell 1.2% m/m, narrowly missing the consensus forecast. The March unemployment rate fell to 6.0%—the lowest rate in a year.
In the eurozone, the final Markit March Services PMI was revised higher to 49.6 from a previous estimate of 48.8. The February unemployment rate remained unchanged from the prior month at 8.3%, slightly higher than forecast. In the UK, the final reading for the March CIPS/Markit Services PMI was 56.3—signaling the fastest rate of expansion in seven months.
In Japan, the final March Jibun Bank Services PMI was revised higher to 48.3 from a previous estimate of 46.5. The preliminary reading of Japan’s February Leading Economic Index (LEI) rose 1.2% m/m. In China, the Caixin Services PMI rose to 54.3—higher than forecast and a three-month high. March consumer prices rose 0.4% y/y, slightly higher than estimates.
The Week Ahead:
The US, China, and Japan announce March retail sales. The US also releases March consumer prices and industrial production. The UK posts February industrial and manufacturing production. The eurozone reports February retail sales and industrial production. Japan releases preliminary March money supply (M2). Next Friday, Japanese Prime Minister Yoshihide Suga and President Biden are scheduled to meet in Washington DC. China announces Q1 2021 GDP and March trade data.
Source for all data cited is FactSet. This update constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. No assurances are made we will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Global equities are represented by the MSCI World Index. The MSCI World Index measures the performance of selected stocks in 23 developed countries and is presented net of dividend withholding taxes and uses the maximum rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.