Weekly Wrap-Up

Last Week In Markets: Nov 6 - Nov 10, 2017

Fisher Investments recaps the biggest market, political and economic news from last week, including US tax reform and economic data releases, Europe industrial production, Chinese trade data and Japanese economic data.

Global stocks fell 0.2% amid generally positive economic reports.

US economic data releases were light, but positive. Consumer credit increased by $20.8 billion in September, beating expectations. The labor market continues to impress as September job openings ticked up to 6.093 million. Initial jobless claims for the week ending November 4 rose slightly to 239,000, yet remained near historic lows. In politics, Senate Republicans unveiled their own tax reform proposal with some notable differences from the House Republicans’ Tax Cuts and Jobs Act released last week. It’s still too early to know what a final tax bill may include, or if the legislative process even makes it that far. Additionally, as legislation is discussed publicly under relentless media scrutiny, any eventual change won’t take stocks by surprise. That’s why tax changes have historically had little discernible influence on markets and this time looks no different. For more, please see our 11/06/2017 MarketMinder commentary, “Don’t Let the House’s Tax Plan Tax Your Nerves.”

European economic data were generally positive. Eurozone October Markit Purchasing Managers’ Indexes showed continued growth in services and manufacturing. Eurozone retail sales increased 3.7% y/y in September, ahead of forecasts. The UK, France, Germany and Spain all reported positive year-over-year growth in September industrial production. In the UK, house prices rose 4.5% y/y in the three months ending October 2017. September construction output fell 1.6% m/m but rose 1.1% y/y. September exports and imports increased 2.2% m/m and 0.7% m/m, respectively.

In China, consumer prices rose 1.9% y/y in October. Chinese October export and import values increased 6.9% y/y and 17.2% y/y, respectively. In Japan, October bank lending rose 2.8% y/y, slightly missing expectations.

The Week Ahead:

The US releases October consumer prices, industrial production and retail sales. The UK reports October inflation data and retail sales. The eurozone posts September industrial production and October inflation data. Japan releases a preliminary estimate of Q3 2017 GDP. China reports October industrial production and retail sales.

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.