Fisher Investments recaps the biggest market, political and economic news from last week, including US January LEI, UK unemployment data and eurozone core consumer prices.
In the US, data were positive. The Conference Board’s January Leading Economic Index (LEI) increased 0.5% m/m, surpassing forecasts. The second estimate of Q4 2020 GDP held steady at 4.1% q/q annualized. Initial readings of January durable goods orders showed a 3.4% m/m increase, well above market expectations of 1.0%. January new home sales increased to 923,000.
Data in the eurozone were light. January core consumer prices (excluding energy, food, alcohol and tobacco) grew 1.4 y/y, in line with estimates and marking an increase for the first time since July. January money supply (M3) increased by 12.5% y/y. In the UK, the unemployment rate increased to 5.1% for the three months ending in December 2020, in line with forecasts.
In Japan, January preliminary industrial production and retail sales decreased 5.3 y/y and 2.4% y/y, respectively. January imports and exports remained unchanged from their prior readings at -9.5% y/y and 6.4% y/y respectively.
The Week Ahead
The US releases its second estimate of Q4 2020 GDP as well as January new home sales, durable goods orders and the Conference Board’s Leading Economic Index. The eurozone announces January inflation and M3 money supply. The UK posts unemployment for the three months ending in December. Japan reports January trade figures, industrial production and retail sales.
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.