Fisher Investments Reviews: Last Week in Markets—June 10 - June 14

In the US, initial jobless claims rose to 242,000 in the week ending June 8, higher than expected. May headline consumer inflation held steady m/m, but decelerated to 3.3% y/y. May core consumer inflation (which excludes food and energy) slowed to 0.2% m/m and 3.4% y/y, both lower than expected. On Wednesday, the Federal Reserve left the fed-funds target rate unchanged at 5.25% - 5.5%. We think investors should tune out the speculation and handwringing over what the Fed will do next. Monetary policy still isn’t predictable or make-or-break for stocks. For more, see our 6/12/2024 commentary, “Quit Playing the Fed’s Dull Waiting Game.”

In the UK, April GDP was flat at 0.0% m/m, in-line with expectations. April industrial production decreased 0.9% m/m and 0.4% y/y, while manufacturing production decreased 1.4% m/m and increased 0.4% y/y. In the eurozone, April industrial production declined 0.1% m/m and 3.0% y/y.

In Japan, final April industrial production fell 0.9% m/m and 1.8% y/y. The second estimate of Q1 2024 GDP was -0.5% q/q, unchanged from the first estimate. The Bank of Japan left its policy rate at 0.0% - 0.1%. In China, May consumer inflation held steady at 0.3% y/y, lower than expected. May money supply (M2) rose 7.0% y/y, less than forecasts. Outstanding yuan loan growth increased 9.3% y/y in May.

The Week Ahead:

The US, UK, eurozone and Japan release initial June purchasing managers’ index (PMI) readings. The US and China report May retail sales and industrial production. The UK and eurozone release May consumer price data. The UK also reports May retail sales. The Bank of England meets to set monetary policy. Japan releases May 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.