Fisher Investments recaps the biggest market, political and economic news from last week, including US consumer prices, eurozone industrial production and Japanese money supply figures.
Global markets rose amid ongoing Brexit discussions. US data were light. March core consumer prices (excluding food and energy) climbed 2.0% y/y, missing expectations. March producer prices increased 2.2% y/y, beating projections. February factory orders declined 0.5% m/m, in line with consensus.
European data were mostly positive. Eurozone February industrial production declined 0.3% y/y, ahead of forecasts. In the UK, February GDP expanded 2.0% y/y. February construction output rose 3.3% y/y. February industrial and manufacturing production showed growth of 0.1% y/y and 0.6% y/y, respectively, both exceeding expectations of declines. February exports expanded 0.1% m/m while imports declined 0.7% m/m. European Union officials voted Thursday to extend the UK's Brexit deadline from April 12 to October 31, temporarily avoiding a no-deal Brexit. While the delay extends uncertainty, we believe the resolution is a matter of when, not if.
In Asia, Japan’s preliminary March money supply (M2) grew 2.4% y/y, as anticipated, and bank loans grew 2.4% y/y. In China, March consumer prices grew 2.3% y/y, matching consensus expectations. March exports grew 14.2% y/y—marking the strongest growth in five months—and imports fell 7.6% y/y. March outstanding loan growth increased 13.7% y/y, besting estimates.
The Week Ahead:
The US releases March retail sales and industrial production. The eurozone and UK post March consumer price changes. The UK releases March retail sales figures. Japan publishes March trade data. China reports March retail sales.
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.