Fisher Investments Reviews: Last Week in Markets—January 20 - January 24

In the US, January Flash S&P Global Manufacturing Purchasing Managers’ Index (PMI) was 50.1, above expectations, while the Services PMI was 52.8, below consensus forecasts (readings above 50 indicate expansion). 

In the UK, November unemployment rate rose to 4.4%. January Flash S&P Global Manufacturing and Services PMIs were 48.2 and 51.2, respectively, both above consensus forecasts. In the eurozone, the January Flash HCOB Manufacturing PMI beat expectations at 46.1 while the Services PMI was 51.4—below forecast. 

In Japan, November industrial production decreased 2.2% m/m—better than forecast. Preliminary December imports and exports rose to 1.8% y/y and 2.8% y/y, respectively. December headline consumer inflation rose 3.6% y/y, while core consumer inflation (excluding food and energy) remained at 2.4 y/y%. The January Flash Jibun Bank Manufacturing PMI was 48.8, below estimates, while the Service PMI was 52.7, surpassing estimates. The Bank of Japan increased its key short-term interest rate to 0.5% from 0.25%.

The Week Ahead:

The US and eurozone announce their first estimate of Q4 2024 GDP. The eurozone and Japan report unemployment. Japan releases preliminary retail sales, industrial production, and trade data. The Fed and European Central Bank meet to set their respective monetary policies. The eurozone releases December money supply (M3).

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.