Fisher Investments Reviews: Last Week in Markets—January 13 - January 17

In the US, December headline consumer inflation rose 0.4% m/m and 2.9% y/y, while December core consumer inflation (excluding food and energy) rose 0.2% m/m and 3.2% y/y. December retail sales rose 0.4% m/m and 3.9% y/y, lower than forecast. December industrial production rose 0.9% m/m and 0.5% y/y, exceeding estimates. December manufacturing production grew 0.6% m/m and was flat y/y.

In the UK, November GDP expanded 0.1% m/m and 1.0% y/y, below expectations. November industrial production fell 0.4% m/m and 1.8% y/y, while November manufacturing production declined 0.3% m/m and 1.2% y/y. December consumer inflation rose 0.3% m/m and 2.5% y/y, below estimates. December core consumer inflation (which excludes energy, food, alcohol, and tobacco) rose 0.3% m/m and 3.2% y/y, below consensus forecasts. December retail sales decreased 0.3% m/m and rose 3.6% y/y. In the eurozone, November industrial production rose 0.2% m/m and fell 1.9% y/y. December headline consumer inflation rose 2.4% y/y, while December core consumer inflation increased 2.7% y/y—in line with expectations.

In Japan, November retail sales rose 2.8% y/y, above expectations. December bank loans increased 3.1% y/y. In China, Q4 GDP expanded 1.6% q/q and 5.4% y/y. December loan growth grew 7.6% y/y. December money supply (M2) increased 7.3% y/y. December industrial production rose 6.2% y/y, higher than expected. December retail sales increased 3.7% y/y—above estimates. The unemployment rate rose to 5.1% in December.

The Week Ahead:

The US, UK, eurozone and Japan announce preliminary January purchasing managers’ index (PMI) readings. Japan releases November industrial production and December consumer inflation and trade data. The Bank of Japan 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.