Weekly Wrap-Up

Last Week In Markets: Oct 04 - Oct 08 2021

Fisher Investments recaps the biggest market, political and economic news from last week, including US, eurozone, UK, Chinese and Japanese services PMIs, US trade data and eurozone retail sales.

In the US, the final September Markit Services Purchasing Managers’ Index (PMI) was revised up to 54.9 from the preliminary reading of 54.4. PMI readings above 50 indicate expansion. August exports and imports rose 0.5% m/m and 1.4% m/m, respectively. The September unemployment rate fell to 4.8%, better than expected. Nonfarm payrolls increased by 194,000 in September, much lower than expected. On Thursday, the Senate passed a measure to raise the debt limit through early December. The House of Representatives is expected to vote on the bill next week. Among US debt concerns, some investors worry whether the supply of US debt will outstrip demand. However, recent history shows a broad-based range of US debt buyers abound—and we believe this likely continues for the foreseeable future. For more, please see our 10/7/2021 commentary, “Who Keeps Snapping Up US Debt?

In Europe, data were light. In the eurozone, the final September Markit Services PMI was revised slightly higher to 56.4. August retail sales rose 0.3% m/m, missing consensus estimates, and were flat on a year-over-year basis. In the UK, the final September Markit/CIPS Services PMI was revised up to 55.4, improving on the preliminary estimate.

In Asia, data were also light. Japan’s final September Markit/Jibun Bank Services PMI was revised higher to 47.8. In China, the September Markit/Caixin Services PMI reading came in at 53.4, higher than forecast.

The Week Ahead:

The US releases September retail sales while Japan reports August retail sales. The eurozone, UK and Japan announce August industrial production. The US and China release September consumer prices. China also reports September trade data. The UK also releases August unemployment figures.