Fisher Investments Reviews: Last Week in Markets—January 5 - January 9

In the US, the final December S&P Global Services Purchasing Managers’ Index (PMI) was 52.5, revised down from the preliminary estimate of 52.9. Readings above 50 indicate expansion. December nonfarm payrolls increased by 50,000, below expectations. The unemployment rate edged lower to 4.4% in December, slightly less than consensus forecasts.

In the UK, the final December S&P Global Services PMI was 51.4, lower than the initial estimate. November money supply (M4) increased 0.8% m/m, higher than forecasts. In the eurozone, the final December HCOB Services PMI was 52.4, slightly lower than the preliminary reading. December flash consumer inflation slowed to 2.0% y/y, in line with expectations. December flash core consumer inflation (which excludes energy, food, alcohol, and tobacco) decelerated to 2.3% y/y. The unemployment rate fell to 6.3% in November, below consensus forecasts. November retail sales grew 0.2% m/m and 2.3% y/y, both higher than consensus estimates.

In Japan, the final December S&P Global Manufacturing and Services PMIs were 50.0 and 51.6, respectively. In China, December consumer inflation was 0.2% m/m and 0.8% y/y. The December RatingDog Services PMI was 52.0, down from 52.1 in November.

The Week Ahead

The US releases December inflation and November retail sales data. The US, UK and eurozone report December and November industrial production. The US and UK also report December and November manufacturing production. The UK announces November GDP figures. Other December data releases include Japan’s bank lending and China’s trade balance.

Tip of the Week

Fisher Investments’ offices and US markets will be closed on Monday, January 19 in observance of Martin Luther King, Jr. Day. Our offices will reopen Tuesday, January 20.

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.