Weekly Wrap-Up

Last Week In Markets: June 21 - June 24 2022

Fisher Investments recaps the biggest market, political and economic news from last week, including US, UK, eurozone and Japan Purchasing Managers' Indexes (PMIs), UK and Japan inflation data and UK retail sales.

In the US, the June Flash Standard & Poor’s (S&P) Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 52.4 and 51.6, respectively—lower than expected but still indicating expansion (PMI readings above 50 indicate expansion). New home sales rose 10.7% m/m in May, well above consensus estimates.

In the eurozone, the June Flash S&P Global Manufacturing PMI was 52.0, while the Services PMI was 52.8—both below expectations but indicating expansion. In the UK, the June Flash S&P Global/CIPS UK Manufacturing and Services PMIs were both 53.4; the manufacturing figure missed expectations while the services figure exceeded estimates. Retail sales fell 0.5% m/m in May, better than anticipated, and 4.7% y/y, in line with expectations. May consumer prices rose 9.1% y/y and core consumer prices (excluding food and energy) increased 5.9% y/y. While these figures don’t necessarily yield much insight from a data analysis standpoint, we find the dour reactions rather illuminating on sentiment, as they show how far expectations have deteriorated. Moving forward, it shouldn’t take much for reality to surprise positively, which could help bring stocks some relief. For more, please see our 06/22/2022 commentary, “On Wednesday's Dreary British and Canadian Inflation Data.”

In Japan, the June Flash Jibun Bank Manufacturing and Services PMIs were 52.7 and 54.2, respectively—less than forecasted. May consumer prices rose 2.5% y/y while core-core consumer prices (excluding food and energy) increased 0.8% y/y.

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.