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

In the US, the July S&P Global Flash Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 49.5 and 56.0, respectively. Readings above 50 indicate expansion. Preliminary June durable goods orders fell 6.6% m/m, below expectations. June new home sales fell 0.6% m/m. The first estimate of Q2 2024 GDP showed 2.8% annualized growth, well above forecasts. Not only did GDP accelerate, but the private-sector components most relevant for stocks shone brightly. While the stronger-than-expected economic growth gave investor sentiment a boost, we think there is still plenty of room for reality to keep delivering positive surprise ahead. For more, please see our 7/25/2024 commentary “What Q2 2024 US GDP Says About Sentiment.”

In the UK, the July S&P Global Flash Manufacturing and Services PMIs were 51.8 and 52.4, respectively. In the eurozone, the July HCOB Flash Manufacturing and Services PMIs were 45.6 and 51.9, respectively. June money supply (M3) expanded 2.2% m/m, above forecasts.

In Japan, the July Jibun Bank Flash Manufacturing and Services PMIs were 49.2 and 53.9, respectively.

The Week Ahead:

The US, UK, eurozone, Japan and China release final July PMIs. The eurozone releases July inflation data and its first estimate of Q2 2024 GDP. The US reports July unemployment data while the eurozone and Japan report June unemployment figures. The US announces July nonfarm payrolls. The UK releases June money supply (M4) data. Japan reports June trade data, industrial production and preliminary retail sales. The US Federal Reserve, the Bank of England and the Bank of Japan meet to set their respective monetary policies.

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.