Weekly Wrap-Up

Last Week In Markets: Jan 7 - Jan 11, 2019

Fisher Investments recaps the biggest market, political and economic news from last week, including US consumer price data, eurozone retail sales and Japanese PMI numbers.

Global stocks rose 2.8% amid sparse but generally positive data releases. US economic data were light as the government shutdown extended into a third week. (For more on the shutdown, see our 01/07/2019 commentary, “Day 17: Stocks and the US Government Shutdown.”) December consumer prices rose 1.9% y/y, while core consumer prices (excluding food and energy) rose 2.2% y/y. The ISM December non-manufacturing Purchasing Managers’ Index (PMI) came in at 57.6, missing expectations but indicating expansion.

In the eurozone, November retail sales expanded 0.6% m/m, ahead of expectations. The unemployment rate fell to 7.9% in November—the lowest rate since October 2008. The third reading of Q3 2018 GDP growth came in at 1.6% y/y. In the UK, November industrial production contracted 0.4% m/m, missing expectations. UK GDP grew 1.4% y/y in November, just ahead of the consensus forecast. Imports edged up 0.1% m/m in November, while exports increased 0.4% m/m.

China’s December consumer prices rose 1.9% y/y, just below expectations. In Japan, the December Nikkei Services PMI fell to 51.0, lower than the prior reading but still showing expansion.

The Week Ahead:

The US releases December industrial production and retail sales data. The UK releases December consumer price data and retail sales, while the eurozone reports December consumer prices, November industrial production and November trade figures. China announces December trade and money supply data, and Japan reports December consumer price 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 a Luxembourg tax basis. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.