Global equity markets rose 0.2%, ending a positive fourth quarter and great year for stocks. A light week for data releases capped an overall positive year of global economic trends. In the US, November exports and imports of goods rose 3.0% m/m and 2.7% m/m, respectively. November retail and wholesale inventories increased 0.1% m/m and 0.7% m/m, respectively. Meanwhile, robust holiday sales figures seem to indicate US consumption remains healthy.
In the eurozone, November lending increased 2.8% y/y—the fastest loan growth since March 2009 and continuing a months-long positive trend. November money supply (M3) grew 4.9% y/y. Spanish November retail sales rose 1.3 m/m and 2.0% y/y, both ahead of forecasts.
In Japan, preliminary November industrial production increased 3.7% y/y, missing expectations. November retail sales rose 2.2% y/y, ahead of forecasts. November core consumer prices (excluding fresh food) rose 0.9% y/y, slightly more than expected. The November unemployment rate fell to 2.7% from 2.8%.
The US releases December ISM manufacturing and non-manufacturing PMIs, unemployment and trade data, and the Q4 2017 earnings season begins. The eurozone reports December Markit manufacturing and services PMIs and German unemployment. The UK posts December Markit/CIPS manufacturing and services PMIs, house prices and November lending data. China releases December manufacturing and services PMIs. Japan reports December Nikkei manufacturing and services PMIs.
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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.