Fisher Investments Reviews: Last Week in Markets—July 8 - July 12

In the US, June headline consumer prices declined 0.1% m/m while rising 3.0% y/y. June core consumer prices (which exclude food and energy) slowed to 0.1% m/m and 3.3% y/y. Both headline and core were lower than expected.

In the UK, May industrial production increased 0.2% m/m and 0.4% y/y, while manufacturing production increased 0.4% m/m and 0.6% y/y. May GDP expanded 0.4% m/m, exceeding expectations. Many called the expansion evidence Britain’s economic recovery is deep-rooted and here to stay, but monthly GDP often wobbles. In our view, it’s best to avoid reading too much into volatile short-term data. For more, see our 7/11/2024 commentary, UK May GDP Basked in the Sun”.

In Japan, May industrial production rose 3.6% m/m and 1.1% y/y. In China, June consumer prices rose 0.2% y/y, lower than expected. Exports increased 8.6% y/y in June, while imports decreased 2.3% y/y. June money supply (M2) expanded 6.2% y/y, less than forecast. Outstanding yuan loan growth rose 8.1% y/y in June, lower than May’s reading.

The Week Ahead:

The US reports June manufacturing production. The US and China report June industrial production. The US, UK, and China report June retail sales. The UK, eurozone, and Japan release June inflation data. The eurozone reports May industrial production. Japan releases May retail sales and June trade data. China reports Q2 2024 GDP. The European Central Bank meets to set monetary policy.

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.