Fisher Investments Reviews: Last Week in Markets—June 17 - June 21

In the US, May retail sales grew 0.1% m/m and 2.3% y/y, both below estimates. May manufacturing production increased 0.9% m/m and 0.1% y/y, while industrial production increased 0.9% m/m and 0.4% y/y. June S&P Global Flash Manufacturing and Services Purchasing Managers' Indexes (PMIs) were 51.7 and 55.1, respectively—both indicating expansion. (Readings over 50 indicate expansion)

In the UK, May headline consumer prices eased to 2.0% y/y, while May core consumer prices (excluding energy, food, alcohol, and tobacco) slowed to 3.5% y/y. The June S&P Global Flash Manufacturing PMI was 51.4—slightly above expectations—while the Flash Services PMI was 51.2, below forecasts. May retail sales grew 2.9% m/m and 1.3% y/y, beating expectations. In the eurozone, May headline consumer prices increased 2.6% y/y, while core consumer prices rose 2.9% y/y—in line with expectations. The June HCOB Flash Manufacturing and Services PMIs were 45.6 and 52.6, respectively.

In Japan, May headline consumer prices increased 2.8% y/y, while core-core consumer prices (excluding food and energy) eased to 2.1% y/y. The June Jibun Bank Flash Manufacturing and Services PMIs were 50.1 and 49.8, respectively. May preliminary imports and exports rose 9.5% y/y and 13.5% y/y, respectively. In China, May retail sales rose 3.7% y/y, beating expectations. May industrial production rose 5.6% y/y, below forecasts. The May unemployment rate was 5.0%, unchanged from April’s reading.

The Week Ahead:

The US and UK report their third estimates of Q1 2024 GDP. The US reports May durable goods orders. The eurozone reports May money supply. Japan releases May unemployment, trade data and industrial production. China reports June manufacturing and services PMIs.

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.