Last Week in Markets Weekly Wrap-Up

Last Week In Markets: Aug 1 - Aug 5 2022

Fisher Investments recaps the biggest market, political and economic news from last week, including US, UK, eurozone, China and Japan Manufacturing and Services PMIs, US unemployment data and eurozone retail sales.

In the US, the July S&P Global Manufacturing Purchasing Managers’ Index (PMI) was revised lower to 52.2 while the July S&P Global Services PMI was revised higher to 47.3. Readings over 50 indicate expansion while readings under 50 indicate contraction. For more commentary on July PMI readings, please see our 8/3/2022 MarketMinder article “Mixed Messages in America’s Services Surveys.” Nonfarm payrolls increased by 528,000 jobs in July, decisively beating consensus forecasts. The July unemployment rate ticked down to 3.5%, lower than expected.

In the UK, the July S&P Global/CIPS Manufacturing and Services PMIs were revised lower to 52.1 and 52.6, respectively. The Bank of England raised its benchmark interest rate by 50 basis points to 1.75%. The Bank of England also released its August Monetary Policy Report, which included the bank’s updated economic forecasts. For more on our thoughts, please see our 8/5/2022 MarketMinder article “On the BoEs Dreary Forecast.” In the eurozone, the July S&P Global Manufacturing and Services PMIs were revised upward to 49.8 and 51.2, respectively. June retail sales fell 1.2% m/m and 3.7% y/y, less than forecast. The June unemployment rate remained unchanged at 6.6%.

In Asia, data were light. In Japan, the July Jibun Bank Manufacturing and Services PMIs were revised lower to 52.1 and 50.3, respectively. In China, the July Markit/Caixin Manufacturing PMI was 50.4, lower than expected. Meanwhile, the July Markit/Caixin Services PMI was 55.5, higher than expected.

The Week Ahead

The US and China announce July consumer prices. The UK reports the first estimate of Q2 2022 GDP, Q2 trade data and June manufacturing production. The eurozone and UK release June industrial production. Japan and China release July money supply (M2) and lending figures. China also releases July trade data.