Fisher Investments recaps the biggest market, political and economic news from last week, including US, UK, eurozone and Japanese PMI readings, US initial jobless claims and UK retail sales data.
In the US, the March Markit Manufacturing and Services Flash Purchasing Managers’ Indexes (PMIs) increased to 59.0 and 60.0, respectively (readings above 50 indicate expansion). The third estimate of Q4 2020 GDP growth was revised up from 4.1% to 4.3% annualized. Initial jobless claims dropped to 684,000 for the week ending March 20, below expectations for 730,000.
In the eurozone, March Markit Manufacturing and Services Flash PMIs were 62.4 and 48.8, respectively—both exceeding expectations. Money supply (M3) rose 12.3% y/y in February, lower than expected. In the UK, February core consumer prices (excluding food and energy) rose 0.9% y/y, lower than the consensus forecast. February retail sales grew 2.1% m/m but declined 3.7% y/y. March Markit Services and Manufacturing Flash PMIs were 56.8 and 57.9, respectively, both above market expectations. The unemployment rate for the three months ending in January declined slightly to 5.0%.
In Japan, the March Jibun Bank Manufacturing and Services PMIs rose slightly to 52.0 and 46.5, respectively.
The Week Ahead:
The US, eurozone, China and Japan report final March PMIs. The US and Japan release February unemployment figures while the UK announces its second estimate of Q4 2020 GDP. The eurozone posts February retail sales.
Tip of the Week:
Fisher Investments’ offices and US markets will be closed on Friday, April 2 in observance of Good Friday.
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.