Last Week In Markets: Jan 18 - Jan 21 2022

In the US, data were light. Weekly initial jobless claims rose by 286,000 in the week ending January 15, more than expected.

In the eurozone, December core consumer prices (excluding food, energy, alcohol and tobacco) rose 2.6% y/y, in line with forecasts. In the UK, December core consumer prices (excluding food, energy, alcohol and tobacco) rose 4.2% y/y—slightly higher than expected. December retail sales decreased 3.7% m/m and 0.9% y/y—both missing estimates. The November unemployment rate dropped to 4.1%—lower than expected.

In Japan, December core-core inflation (excluding fresh food and energy) declined 0.7% y/y. December imports and exports grew 41.1% y/y and 17.5% y/y, respectively. November industrial production increased 7.0% m/m and 5.1% y/y—both slightly lower than expectations. November retail sales rose 1.3% m/m and 1.9% y/y. The Bank of Japan left monetary policy unchanged. In China, Q4 2021 GDP growth decelerated to 4.0% y/y—modestly beating expectations, but the weakest expansion since early 2020.

The Week Ahead:

The US, UK, eurozone and Japan release January Markit Flash Manufacturing and Services Purchasing Managers’ Indexes (PMIs.) The US reports Q4 2021 GDP, December durable goods orders and the Federal Reserve meets to set monetary policy. Japan announces November’s Leading Economic Index (LEI) and December retail sales. The eurozone releases December money supply growth (M3).

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.