Weekly Wrap-Up

Last Week In Markets: July 01 - July 05, 2019

Fisher Investments recaps the biggest market, political and economic news from last week, including Markit Purchasing Manager’s Indexes and eurozone money supply growth.

Global markets rose 1.3% during a holiday-shortened week. US economic data were mixed. In the US, data were positive. Final June Markit Manufacturing and Services Purchasing Managers’ Indexes (PMIs) rose to 50.6 and 51.5, respectively—beating consensus forecasts (readings above 50 indicate expansion). Additionally, the ISM June Manufacturing and Non-Manufacturing PMIs came in at 51.7 and 55.1, respectively. May export and import values increased 2.0% m/m and 3.3% m/m, respectively. June nonfarm payrolls added 224,000 jobs, ahead of forecasts while the unemployment rate rose slightly to 3.7%.

In Europe, data were mixed. June eurozone Markit Manufacturing and Services PMIs were revised to 47.6 and 53.6, respectively. May money supply (M3) increased 4.8% y/y while household lending rose 3.3% y/y. May retail sales fell 0.3% m/m but rose 1.3% y/y. In the UK, money supply increased 2.2% y/y in May. June Markit/CIPS Manufacturing and Services PMIs were released at 48.0 and 50.2, respectively—below expectations. While UK and eurozone manufacturing readings remain weak, the UK and eurozone are primarily services-driven economies and services readings continue to show expansion.

The June Nikkei Manufacturing PMI was revised down to 49.3 from 49.5. May household spending rose 4.0% y/y. China released the official June Manufacturing and Non-Manufacturing PMIs, coming in at 49.4 and 54.2, respectively. The June Caixin Manufacturing and Services PMIs were 49.4 and 52.0, respectively—both below forecasts.

The Week Ahead:

The US and China release June inflation data while the UK and eurozone announce May industrial production. The UK and China also report May trade figures. Japan releases May retail sales and industrial production.

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.