Last Week In Markets: Feb 07 - Feb 11 2022

In the US, core consumer prices (excluding food and energy) rose 0.6% m/m and 6.0% y/y, both slightly higher than expected. Similar to other recent US inflation readings, shelter and used vehicles were among the largest contributors. We continue to believe that pricing pressures should ease as this year progresses. In terms of market impact, we think the vast attention paid to January’s inflation report further saps the shock factor, likely allowing markets to move on from inflation fears sooner than many seem to expect. For more, please see our 2/10/2022 commentary, “How Inflation Fears Are Shaping Sentiment.”

In the UK, the first estimate of Q4 2021 GDP reported growth of 1.0% q/q and 6.5% y/y—in line with expectations. December industrial production rose 0.3% m/m and 0.4% y/y. December manufacturing production rose 0.2% m/m and 1.3% y/y.

In Japan, preliminary January money supply (M2) increased 3.6% y/y, slightly below consensus estimates. January bank lending rose 0.6% y/y. In China, January loan growth increased 11.5% y/y, slightly less than expected, while money supply (M2) rose 9.8% y/y, above forecasts. The January Markit/Caixin Services Purchasing Managers’ Index declined to 51.4, less than expected and still signaling expansion.

The Week Ahead:

The US, UK, and Japan release January retail sales data. The US provides January manufacturing and industrial production numbers. The UK, Japan and China post January inflation data. Japan and the eurozone report their first and second estimates of Q4 2021 GDP, respectively, as well as industrial production and trade data.

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.