Fisher Investments Reviews: Last Week in Markets—December 9 - December 13

In the US, headline November consumer inflation rose 0.3% m/m and 2.7% y/y. November core consumer inflation (excluding food and energy) grew 0.3% m/m and 3.3% y/y, in line with expectations.

In the UK, October GDP contracted 0.1% m/m, missing expectations. October industrial production fell 0.6% m/m and 0.7% y/y, while manufacturing production decreased 0.6% m/m and remained flat y/y. In the eurozone, October industrial production was flat m/m and fell 1.2% y/y. The European Central Bank lowered interest rates by 25 basis points. Many continue to speculate on the pace of future rate cuts. Whether or not the ECB lowers rates further from here, the eurozone economy seems to be growing at a moderate pace, and incremental policy moves are unlikely to alter that backdrop in our view. For more, please see our 12/12/2024 commentary, “Rate Cut Focus Is Proving Overrated … in Charts!”

In Japan, the second estimate of Q3 2024 GDP growth increased 0.3% q/q and 0.5% y/y. October industrial production rose 2.8% m/m and 1.4% y/y. In China, November imports and exports rose 6.7% and fell 3.9%, respectively. November loan growth increased 7.7 % y/y. November money supply (M2) grew 7.1% y/y.

The Week Ahead

The US reports their third estimate of Q3 2024 GDP and November industrial and manufacturing production. The US, UK, eurozone and Japan release preliminary December manufacturing and services Purchasing Managers Indexes (PMIs). The US, UK and China report November retail sales, while Japan releases October retail sales. The UK, eurozone and Japan release November consumer inflation. Japan reports preliminary November trade data. The Bank of England meets to set 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 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.