Weekly Wrap-Up

Last Week In Markets: Apr 29 - May 03, 2019

Fisher Investments recaps the biggest market, political and economic news from last week, including eurozone GDP and Chinese PMI releases.

Global markets rose this week amid positive economic data. US economic data were mostly positive. The final April Markit manufacturing and services Purchasing Managers’ Indexes (PMIs) came in at 52.6 and 53.0, respectively, both beating expectations and signaling economic expansion with readings over 50. The April ISM manufacturing and non-manufacturing PMIs fell to 52.8 and 55.5, respectively—both missing estimates but continuing to indicate growth. April nonfarm payrolls increased by 263,000 and the unemployment rate fell to 3.6%—the lowest rate since December 1969. As expected, the Fed held interest rates steady.

In the eurozone, the first estimate of Q1 2019 GDP showed an increase of 1.2% y/y, beating forecasts. The final April Markit manufacturing PMI ticked up to 47.9, slightly ahead of expectations. The March unemployment rate fell to 7.7% and March loan growth expanded 3.2% y/y. April core consumer prices (excluding food and energy) grew 1.2% y/y, above forecasts. In the UK, the April Markit/CIPS manufacturing and services PMIs came in at 53.1 and 50.4, respectively. The Bank of England’s Monetary Policy Committee voted unanimously to keep interest rates unchanged.

In China the official April services PMI survey, including large, state-owned firms, was 53.3, but still indicated expansion. The April Markit/Caixin manufacturing PMI—which include smaller businesses—came in at 50.2, below expectations.

The Week Ahead:

The US and China report April inflation figures. The UK releases March trade data and industrial and manufacturing production. China reports April trade numbers. Japan announces April Nikkei manufacturing PMI.

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.