Weekly Wrap-Up

Last Week In Markets: Dec 18 - Dec 22, 2017

Fisher Investments recaps the biggest market, political and economic news from last week, including US tax reform, eurozone economic releases and Japanese trade data.

Global stocks finished 0.7% higher. Congress passed the Tax Cuts and Jobs Act of 2017 and President Trump signed the bill into law. While the bill affects many businesses and individuals, history shows tax changes don’t move markets much. Taxes are just one of myriad drivers impacting global stocks. Additionally, markets have had months to price in the expected changes—sapping surprise power. (For more commentary on the tax reform law, see our 12/20/2017 MarketMinder article, “About That Tax Reform Bill.”) Congress also passed a stopgap spending bill extending government funding through January 19 and kicking the “shutdown” can to next year. While many investors fear government shutdowns might drag stocks, history shows they are short-lived and none have caused a bear market or recession. The third estimate of US Q3 2017 GDP was revised to 3.2% annualized, slightly below estimates but still the highest growth rate since Q1 2015. The November Leading Economic Index (LEI) rose 0.4% m/m—in line with forecasts. November durable goods orders rose 1.3% m/m. November new home sales jumped to a 733,000 seasonally adjusted annual rate—higher than the expected 655,000.

In Europe, data releases were light. The third estimates of Q3 2017 French and UK GDP were revised up to 2.3% y/y and 1.7% y/y, respectively. November eurozone consumer prices rose 1.5% y/y, matching expectations. November German producer prices rose 2.5% y/y.

News and data releases in Asia were also light. The Bank of Japan left monetary policy unchanged. Japanese November export values rose 16.2% y/y, beating estimates while import values rose 17.2% y/y, missing estimates.

The Week Ahead:

In a holiday-shortened week, the US releases November wholesale inventories, the UK announces December house prices and the eurozone posts November loan growth. Japan reports November consumer prices, retail sales, industrial production and unemployment.

Tip of the Week:

In a holiday-shortened week, the US releases November wholesale inventories, the UK announces December house prices and the eurozone posts November loan growth. Japan reports November consumer prices, retail sales, industrial production and unemployment.

For those who read MarketMinder.com regularly, on Monday, December 18 we merged the site with FisherInvestments.com to better consolidate our educational resources for you. The content and design are largely unchanged—it just exists in a new location— and is still accessible by using the www.MarketMinder.com web address. Additionally, we replaced the MarketMinder App with a new Fisher Investments App. You can download the new app from the iTunes Store for Apple iOS and Google Play Market for Android.

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 a Luxembourg tax basis. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.