Global equities ended the week 1.3% higher amid generally positive economic data. US economic data were positive. May Markit and Institute for Supply Management purchasing managers’ indexes (PMIs) rose ahead of expectations, as manufacturing activity expanded. May nonfarm payrolls missed forecasts, increasing by 138,000 jobs, while the unemployment rate decreased to this expansion’s new low: 4.3%. Eurozone economic data were broadly positive. April unemployment fell further than expected and core consumer prices rose modestly slower than expected by 0.9% y/y. In the UK, May’s construction PMI rose sharply ahead of forecasts, 56.0 versus the 52.7 estimate, and UK housing prices rose 2.1% y/y. Economic releases in Asia were broadly positive. Japan’s Q1 capital spending grew sharply ahead of estimates, signaling improved corporate optimism. China’s May manufacturing PMI continued to expand with a reading ahead of expectations.
The US reports the Institute for Supply Management’s non-manufacturing data. The eurozone releases its detailed Q1 GDP report. The UK holds a snap election. The US, eurozone and UK all report May services PMIs. Japan releases final Q1 GDP, and China reports May trade and inflation 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.