Last Week In Markets: July 3 - July 7 2023

In the US, the final June S&P Global Manufacturing Purchasing Managers’ Index (PMI) remained unchanged from the flash estimate at 46.3, while the final Services PMI was revised up to 54.4. Readings over 50 indicate expansion. Nonfarm payrolls increased by 209,000 in June, down from the previous month and below expectations. The June unemployment rate ticked down slightly to 3.6%, matching forecasts. The latest data in the US suggest economic growth continues to muddle along. Yet, pessimism remains prevalent—suggesting stocks have plenty of wall of worry to climb entering 2023’s second half. For more, please see our 7/6/2023 commentary, “A US Economic Snapshot at 2023’s Midway Point.”

In the eurozone, the final June HCOB Global Manufacturing PMI was 43.4 and the final Services PMI was 52.0—both lower than anticipated. May retail sales were flat m/m and fell 2.9% y/y, missing expectations. In the UK, the final June S&P Global/CIPS Manufacturing and Services PMIs were 46.5 and 53.7, respectively.

In Japan, the final June Jibun Bank Manufacturing PMI was 49.8, unchanged from the flash reading, while the final Services PMI was revised down to 54.0. In China, the final June Markit/Caixin Manufacturing and Services PMIs were 50.5 and 53.9, respectively.

The Week Ahead:

The US and China release June inflation data. The eurozone, UK and Japan report May industrial production. The UK reports May manufacturing production and June retail sales. Japan and China report June money supply (M2). China reports June trade 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.