Last Week In Markets: Jan 24 - Jan 28 2022

In the US, the first estimate of Q4 2021 GDP showed 6.9% annualized growth, surpassing estimates. The January Flash Markit Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 55.0 and 50.9, respectively, both lower than expectations but still indicating expansion. Preliminary December durable goods orders fell 0.9% m/m, missing estimates. On Wednesday, the Federal Reserve reiterated plans to start raising rates soon and to end its quantitative easing (QE) bond purchases in March.

In the eurozone, the January Flash Markit Manufacturing PMI was 59.0, higher than forecast, while the January Flash Markit Services PMI came in slightly lower than expected at 51.2. December money supply (M3) rose 6.9% y/y, slightly below estimates. In the UK, the January Flash Markit/CIPS Manufacturing PMI was 56.9, short of expectations. The January Flash Markit/CIPS Services PMI was 53.4, above consensus forecasts.

In Japan, the January Flash Markit Manufacturing PMI rose slightly to 54.6 while the January Flash Market Services PMI fell to 46.6. Final December imports and exports increased 41.1% y/y and 17.5% y/y, respectively, in line with forecasts.

The Week Ahead:
The US, UK, eurozone, Japan and China release final January manufacturing and services PMIs. The US reports final December durable goods orders. The UK posts December money supply (M4). The eurozone announces its first estimate of Q4 2021 GDP. The eurozone and Japan report December retail sales. Japan releases preliminary December industrial production. The European Central Bank and Bank of England meet to set their respective monetary policies.

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.