Fisher Investments Reviews: Last Week in Markets—August 7 – August 11

In the US, July consumer prices remained steady at 0.2% m/m, in line with expectations, and accelerated to 3.2% y/y from 3.0% y/y in June, slightly below forecasts. Core consumer prices—which exclude food and energy—rose 0.2% m/m, matching estimates, and decelerated to 4.7% y/y. July’s reacceleration didn’t generate much angst, signaling sentiment toward falling inflation is calming. For more, please see our 8/10/2023 commentary, “CPI Offers a Sentiment Check.”

In the UK, the first estimate of Q2 2023 GDP showed 0.2% q/q and 0.4% y/y expansion, beating forecasts. June industrial production increased 0.7% y/y while manufacturing production increased 3.1% y/y—both exceeding estimates.

In Japan, July loan growth decelerated to 2.9% y/y. July money supply (M2) increased 2.4% y/y, exceeding expectations. In China, July consumer prices fell 0.3% y/y, in line with forecasts. July money supply (M2) increased 10.7% y/y, below forecasts, while July loan growth increased 11.1% y/y. July exports fell 14.5% y/y while imports dropped by 12.4% y/y, both behind expectations.

The Week Ahead:

The eurozone releases its second estimate of Q2 2023 GDP while Japan releases its first estimate. The US and UK report July retail sales. The UK and Japan report July inflation data. The US announces July industrial production data, while the eurozone releases June 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.