Last Week In Markets: Feb 20 - Feb 24 2023

WAAG Text:

In the US, the second estimate of Q4 2022 GDP was revised to 2.7% annualized—below the 2.9% first estimate. New home sales grew 7.2% m/m in January. The February Flash S&P Global Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 47.8 and 50.5, respectively—above expectations. Readings above 50 indicate expansion. PMIs are quietly beginning to return towards expansion, which further supports the notion that a new bull market is nearby, if not already underway. For more, please see our 2/22/2023 commentary, “Economic Green Shoots While Snow Falls?”

In the UK, the February Flash CIPS/S&P Global Manufacturing and Services PMIs were 49.2 and 53.3, respectively—higher than forecasts. In the eurozone, the February Flash S&P Global Manufacturing and Services PMIs were 48.5 and 53.0, respectively. January headline consumer prices rose 8.6% y/y, while core consumer prices (excluding energy, food, alcohol and tobacco) rose 5.3% y/y.

In Japan, the February Flash Jibun Bank Manufacturing and Services PMIs were 47.4 and 53.6, respectively. January headline consumer prices rose 4.3% y/y, while core-core consumer prices (excluding fresh food and energy) increased 3.2% y/y. January imports rose 17.8% y/y while exports rose 3.5% y/y.

The Week Ahead:

The US, UK, eurozone and Japan report final February PMIs, while China reports its sole readings. The eurozone and Japan announce January retail sales. The eurozone reports January unemployment data, January money supply (M3) and preliminary February inflation data. The UK releases January money supply (M4) figures. Japan reports preliminary January industrial production and unemployment 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.