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

In the US, the final April S&P Global Services Purchasing Managers’ Index (PMI) was 50.8, below expectations (readings above 50 indicate expansion). The final April S&P Global Composite PMI was 50.6, below consensus forecasts. The Federal Reserve kept the federal funds rate steady at 4.25 – 4.5%, in line with expectations.

In the UK, the final April S&P Global Services PMI was 49.0, above expectations. The final April S&P Global Composite PMI was 48.5, above consensus forecasts. The Bank of England lowered its Bank Rate by 25 basis points to 4.25%, in line with expectations. In the eurozone, the April final HCOB Services PMI was 50.1, higher than expected. The final April HCOB Composite PMI was 50.4, above consensus forecasts. March retail sales fell 0.1% m/m and grew 1.5% y/y.

In Japan, the final April Jibun Bank Services PMI was 52.4, above expectations. The final April Jibun Bank Composite PMI was 51.2, up from the previous month’s 48.9. The Bank of Japan left its policy rate unchanged at 0.5%. In China, the April final Caixin Services PMI—which include smaller businesses—was 50.7, lower than expected. The final April Caixin Composite PMI was 51.1, down from the previous 51.8 reading in March. April imports and exports fell 0.2% y/y and rose 8.1% y/y, respectively. April consumer inflation fell 0.1% y/y, in line with expectations.

The Week Ahead:

The US releases April consumer inflation. The US, UK, eurozone and Japan report April industrial production. The US and UK release April manufacturing production. The US and Japan report April retail sales. The UK releases March GDP, while the eurozone releases its second estimate of Q1 2025 GDP and Japan releases its first estimate. Japan reports April loan growth.

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.