Weekly Wrap-Up

Last Week In Markets: Sept 10 - Sept 14, 2018

Fisher Investments recaps the biggest market, political and economic news from last week, including US inflation numbers, eurozone trade data and Chinese GDP.

Global equities rose amid mixed data releases and global central bank talks. US economic data for August were light. Consumer prices rose 2.7% y/y, just shy of forecasts. Core consumer prices (excluding food and energy) rose 2.2% y/y, also narrowly missing expectations. Retail sales increased 0.1% m/m. Meanwhile, industrial production grew 4.9% y/y.

In Europe, data releases were mixed. July eurozone industrial production fell 0.1%, missing estimates. July eurozone imports and exports rose 13.4% y/y and 9.4% y/y, respectively. In the UK, July industrial production grew 0.9% y/y, below forecasts.UK imports and exports increased 0.4% m/m and 2.0% m/m, respectively in July. The July unemployment rate remained stable at 4%, in line with estimates. As expected, the European Central Bank and the Bank of England both left their respective monetary policies unchanged.

In Asia, China’s August outstanding loans grew 13.2% y/y, in line with expectations. August retail sales grew 9.0% y/y, beating expectations. Industrial production increased 6.1% y/y in August, above estimates. August consumer prices rose 2.3% y/y, slightly higher than forecast. In Japan, July industrial production grew 2.2% y/y, missing forecasts, and August bank lending also grew 2.2% y/y. The second estimate of Q2 2018 GDP growth was revised higher to 0.7% q/q, up from a preliminary estimate of 0.5% q/q.

The Week Ahead:

The US and eurozone release September manufacturing and services Flash Purchasing Managers’ Index (PMI) data. The eurozone reports August inflation data. The UK posts August inflation and retail sales numbers. Japan releases August inflation, trade data and the September manufacturing Flash PMI. Finally, the Bank of Japan meets to discuss monetary policy.

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.