Last Week In Markets: Dec 05 - Dec 09 2022

In the US, data were light. The final November S&P Global Services Purchasing Managers’ Index (PMI) was revised up to 46.2 (readings over 50 indicate expansion). On Tuesday, December 6, incumbent Democratic Senator Raphael Warnock won re-election in Georgia’s Senate runoff race—giving the Democratic Party a 51-49 Senate majority. Then, on Friday, Arizona Senator Kyrsten Sinema announced she was leaving the Democratic Party and registering as an independent. Since Sinema ruled out caucusing with Republicans, the Democratic Party will still retain a one-seat Senate majority. However, given Republicans gained a House of Representatives majority, US politics is set for traditional, interparty gridlock for the next two years of President Biden’s term. For more, see our 12/07/2022 commentary, “Closing the Books on 2022’s Midterms.”

In the eurozone, the final November S&P Global Services PMI was revised down to 48.5. The third estimate of Q3 2022 GDP growth was revised higher to 0.3% q/q, or 2.3% y/y. October retail sales fell 1.8% m/m and 2.7% y/y, below expectations. In the UK, the final November S&P Global/CIPS Services PMI was unchanged from the preliminary reading of 48.8.

In Japan, the final November Jibun Bank Services PMI was revised up to 50.3. The second Q3 2022 GDP estimate was revised to -0.2% q/q and 1.5% y/y growth. November bank lending increased 2.7% y/y. Preliminary November money supply (M2) rose 3.1% y/y. In China, the November Caixin Services PMI was revised down to 46.7. November consumer prices decreased 0.2% m/m but increased 1.6% y/y. November imports and exports fell 10.6% y/y and 8.7% y/y, respectively—both more than expected. November money supply (M2) expanded 12.4% y/y.

The Week Ahead:

The US, eurozone, UK and Japan release flash December manufacturing and services PMIs. The US, eurozone and UK report November inflation figures. The US, UK and China release November retail sales, while Japan releases October retail sales. The UK announces the October unemployment rate. Japan releases preliminary November trade data. The US Federal Reserve, European Central Bank and Bank of England meet to set their respective monetary policies.

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.