Last Week In Markets: July 05 - July 08 2022

In the US, the final June S&P Global US Services Purchasing Managers’ Index (PMI) was revised down to 52.7 from the preliminary reading of 53.4 (PMI readings above 50 indicate expansion). May exports and imports rose by 1.2% m/m and 0.6% m/m, respectively. June nonfarm payrolls rose by 372,000, higher than forecasts, while the unemployment rate remained at 3.6%. For more analysis on recent labor market data, please see our 7/7/2022 MarketMinder article “Why JOLTS Shouldnt Jolt Your Economic Outlook.”

In the eurozone, the final June S&P Global Eurozone Services PMI was revised higher to 53.0, above the preliminary estimate of 52.8 and signaling expansion. May retail sales rose 0.2% m/m and 0.2% y/y. In the UK, the final June S&P Global/CIPS UK Services PMI was revised higher to 54.3, above the initial estimate of 53.4. In politics, Boris Johnson’s resignation now kick starts the process to find a successor within the Conservative Party. While there is uncertainty surrounding how these events will play out, as clarity arrives gradually, we believe falling uncertainty likely provides a modest tailwind to UK stocks.

In Japan, the final June Jibun Bank Services PMI was 54.0, marking the third straight month of expansion. Bank lending rose 1.3% y/y in June. In China, the June Caixin Services PMI was 54.5, above estimates.

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.