Last Week In Markets: Jan 9 -13, 2017
Fisher Investments recaps the biggest market, economic and political news from last week, including US, European, Japanese and Chinese economic releases.
Global equities rose modestly as economic data were mixed and corporate earnings beat expectations.
US economic data were mixed. Earnings season started positively, with most major US banks beating expectations due to strong trading and loan growth. December’s Small Business Optimism Index jumped to 105.8, handily exceeding expectations for 98.4. December retail sales rose 0.6% m/m, slightly missing estimates of 0.7% m/m. Meanwhile, the Producer Price Index (PPI) met expectations at 1.6% y/y, up from November’s 1.3% y/y. On the political front, Republicans initiated the process to repeal portions of the Affordable Care Act, though it is impossible to know what their final plan will look like. Similarly, while President-elect Trump’s press conference garnered attention, it remains too early to discern specific policy plans or their market impact.
European economic data were light but generally positive. November industrial production exceeded expectations in the UK, Germany, Spain, Italy and France. UK construction output accelerated in November to 1.5% y/y. Europe continues to be one of the world’s bright spots when it comes to economic results relative to expectations.
The only major Japanese economic release was December money supply which increased 4.0% y/y, modestly missing forecasts for 4.1% y/y. Chinese export growth, CPI and money supply disappointed, while import growth and currency reserves exceeded expectations.
The Week Ahead:
The US releases CPI, industrial production and several housing reports. The Eurozone reports CPI, and the UK posts CPI and retail sales. Japan releases retail sales and industrial production. China provides an update on retail sales, fourth quarter GDP and industrial production.
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 a Luxembourg tax basis. Past performance is no guarantee of future results. A risk of loss is involved with investments in stock markets.