Weekly Wrap-Up

Last Week In Markets: Feb 28 - Mar 04 2022

Fisher Investments recaps the biggest market, political and economic news from last week, including final US, eurozone, UK, Japanese and Chinese February Manufacturing and Services PMIs, US and eurozone February unemployment rates and UK January money supply (M4) growth.

In the US, the final February Markit Manufacturing and Services Purchasing Managers’ Indexes (PMI) were revised down to 57.3 and 56.5, respectively. Readings over 50 indicate expansion. The February unemployment rate declined to 3.8%, better than expected. Nonfarm payrolls increased by 678,000 in February, beating estimates.

In the eurozone, the final February Markit Manufacturing and Services PMIs were revised lower to 58.2 and 55.5, respectively. Retail sales rose 0.2% m/m and 7.8% y/y in January. Preliminary February core consumer prices (excluding energy, food, alcohol and tobacco) rose 2.7% y/y, above estimates. The January Producer Price Index (PPI) increased 5.2% m/m and 30.6% y/y, higher than expected. The February unemployment rate declined to 6.8%, better than expected. In the UK, the final February Markit/CIPS Manufacturing and Services PMIs were revised to 58.0 and 60.5, respectively. January money supply (M4) grew 0.1% m/m and 5.7% y/y.

In Japan, the final February Jibun Bank Manufacturing and Services PMIs were 52.7 and 44.2, respectively. Preliminary January retail sales fell 1.9% m/m but rose 1.6% y/y. January industrial production decreased 1.3% m/m and 0.9% y/y, missing expectations. The January unemployment rate rose to 2.8%, higher than expected. In China, the official February NBS Manufacturing and Non-Manufacturing PMIs—focused on large, state-owned firms—were 50.2 and 51.6, respectively. Meanwhile, the Markit/Caixin Manufacturing and Services PMIs—which include smaller businesses—were 50.4 and 50.2, respectively.

The Week Ahead:

The US and China release February inflation data. The US reports January trade data. China and Japan report February bank lending and money supply (M2) growth. Japan and the eurozone announce their second and third estimates of Q4 2021 GDP, respectively. The UK reports January industrial and manufacturing production. The European Central Bank meets to set monetary policy.

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.