Fisher Investments Reviews: Last Week in Markets — August 31 - September 4

In the US, the August final S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 53.9 and 56.5, respectively, both higher than expected. Readings above 50 indicate expansion. August nonfarm payrolls increased by 162,000, exceeding the 56,000 expected increase. The unemployment rate remained steady at 4.1% in August, below consensus forecasts.

 In the UK, the August final S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 51.7 and 52.5, respectively. July money supply (M4) decreased 0.3% m/m, lower than forecasts. In the eurozone, August flash consumer inflation accelerated to 3.3% y/y. August flash core consumer inflation (which excludes energy, food, alcohol and tobacco) slowed to 2.4% y/y. The August final S&P Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 52.7 and 51.6, respectively, both lower than expected. The unemployment rate remained steady at 6.4% in July, above consensus forecasts. July retail sales fell 0.6% m/m and grew 0.6% y/y.

 In Japan, the August final S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 54.9 and 52.5, respectively. July preliminary industrial production increased 0.1% m/m, higher than forecasts. July preliminary retail sales grew 4.0% y/y, lower than consensus estimates. In China, the August NBS Manufacturing and Non-Manufacturing Purchasing Managers’ Indexes (PMIs)—focused on large, state-owned firms—were 49.8 and 49.0, respectively. The August RatingDog Manufacturing and Services Purchasing Managers’ Indexes (PMIs)—which include smaller businesses—were 51.5 and 51.4, respectively, both higher than expected.

 The Week Ahead
The eurozone and Japan release final Q2 GDP and the UK releases July GDP. The US and China release August consumer inflation data. The eurozone and China release Q2 and August trade data, respectively. The UK releases July industrial and manufacturing production. Japan releases August bank loans 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 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.