Weekly Wrap-Up

Last Week In Markets: Aug 30 - Sep 03 2021

Fisher Investments recaps the biggest market, political and economic news from last week, including US, eurozone, UK, Japan and China August Purchasing Manager Index (PMI) readings, eurozone July retail sales and Japan's preliminary July industrial production figures.

In the US, the August Markit Manufacturing and Services Purchasing Managers’ Indexes (PMIs) fell slightly to 61.1 and 55.1, respectively but still indicated expansion (readings above 50 indicate expansion). August nonfarm payrolls increased by 235,000, well below the consensus forecast for 750,000. Industries more impacted by recently rising COVID cases, such as leisure and hospitality, accounted for much of the miss. The August unemployment rate fell to 5.2%.

In the eurozone, the August Markit Manufacturing and Services PMIs came in at 61.4 and 59.0, respectively—both missing estimates. July retail sales fell 2.3% m/m but increased 3.1% y/y. Unemployment fell to 7.6% in July, on par with forecasts. In the UK, the August Markit/CIPS Manufacturing and Services PMIs were 60.3 and 55.0, respectively.

In Japan, the Jibun Bank Manufacturing PMI rose to 52.7, higher than forecast, while the Services PMI fell to 42.9, missing expectations. July preliminary industrial production fell 1.5% m/m, less than expected. Preliminary July retail sales rose 2.4% y/y, beating estimates. The July unemployment rate fell slightly to 2.8%. In China, the August official NBS Manufacturing and Services PMIs—focused on large, state-owned firms—fell to 50.1 and 45.2, respectively. The August Markit/Caixin Manufacturing and Services PMIs—which include smaller businesses—came in at 49.2 and 46.7, respectively.

The Week Ahead:

China releases August inflation and trade figures. The eurozone releases its third estimate of Q2 2021 GDP growth while Japan releases its second estimate. The UK announces July industrial and manufacturing production. The European Central Bank meets to set monetary policy.

Tip of the Week:

Fisher Investments’ offices will be closed on Monday, September 6 in observance of Labor Day. We will resume normal business hours on Tuesday, September 7.