Fisher Investments Reviews: Last Week in Markets—April 22 - April 26

Fisher Investments recaps the biggest market, political and economic news from last week, including Q1 2024 US GDP, eurozone March money supply (M3) and US, UK, eurozone and Japan Purchasing Managers' Indexes (PMIs).

WAAG Text:

In the US, the April S&P Global Flash Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 49.9 and 50.9, respectively—both below expectations. PMI readings above 50 indicate expansion. The Conference Board’s Leading Economic Index (LEI) decreased 0.3% m/m in March. March new home sales rose 8.8% m/m, the highest level in six months. March preliminary durable goods orders rose 2.6% m/m, slightly above expectations. The first estimate of Q1 2024 GDP was 1.6% annualized. Q1 GDP slowed more than expected while quarterly inflation data jumped—contributing to concerns over stalling US economic growth amid sticky inflation. However, the headline Q1 GDP rate was skewed lower by factors that don’t necessarily indicate a weakening economy and multiple pick-ups in inflation over the last year didn’t presage sustained reacceleration. For more, please see our 4/25/2024 commentary: “US Q1 GDP: Better Than Pundits Said.” 

In the UK, the April S&P Global Flash Manufacturing and Services PMIs were 48.7 and 54.9, respectively. In the eurozone, the April HCOB Flash Manufacturing and Services PMIs were 45.6 and 52.9, respectively. March money supply (M3) rose 0.9% y/y.

In Japan, the April Jibun Bank Flash Manufacturing and Services PMIs were 49.9 and 54.6, respectively. The Bank of Japan left its benchmark short-term interest rate unchanged at 0.0% – 0.1%.

The Week Ahead:

The US, UK, eurozone, Japan and China announce final April PMIs. The US reports April unemployment and nonfarm payrolls. The US Federal Reserve meets to set monetary policy. The UK releases March money supply (M4). The eurozone and Japan report March unemployment data. The eurozone also releases April inflation figures and the first estimate of Q1 2024 GDP. Japan reports March industrial production and preliminary retail sales.

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.