Last Week In Markets: Apr 11 - Apr 14 2022

In the US, March retail sales rose 0.5% m/m and 6.9% y/y, lower than the previous month. March consumer prices increased 8.5% y/y and 1.2% m/m—both higher than expected. Core consumer prices—which exclude food and energy—rose 6.5% y/y but decelerated on a month-over-month basis to 0.3% m/m. While continued elevated inflation readings can certainly be painful for individuals’ budgets, history shows stocks can do well in inflationary environments—often keeping pace with (and even exceeding) consumer prices. For more, please see our 4/12/2022 commentary, “March Inflation Through Markets Eyes.”

In the eurozone, the European Central Bank left interest rates unchanged and confirmed their intent to end quantitative easing (QE) asset purchases during Q3 2022. In the UK, March consumer prices rose 7.0% y/y and 1.1% m/m. March core consumer prices rose 5.7% y/y and 0.9% m/m. February industrial production fell 0.6% m/m but rose 1.6% y/y—both figures falling short of expectations. February manufacturing production fell 0.4% m/m—missing forecasts—but rose 3.6% y/y, exceeding estimates.

In Japan, preliminary March money supply (M2) rose 3.5% y/y, in line with expectations. March bank lending increased 0.5% y/y. In China, March consumer prices were level at 0.0% m/m while rising 1.5% y/y—higher than expected. March imports fell 0.1% y/y, short of expectations, while exports rose 14.7% y/y, surpassing forecasts.

The Week Ahead:

The US reports March industrial and manufacturing production. The US, eurozone and UK report flash April manufacturing and services Purchasing Managers’ Indexes (PMIs). Japan releases flash April manufacturing PMI, final February retail sales, and preliminary March trade data. The eurozone and Japan report March inflation data and February industrial production. The UK and China announce March retail sales figures. China reports Q1 2022 GDP.

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.