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

In the US, the May S&P Global Flash Manufacturing and Services Purchasing Managers’ Indexes (PMIs) were 50.9 and 54.8, respectively—both beating expectations. Readings above 50 indicate expansion. April durable orders increased 0.7% m/m, above forecasts. April new home sales fell 4.7% m/m, below expectations.

In the eurozone, the May HCOB Flash Manufacturing and Services PMIs were 47.4 and 53.3, respectively. In the UK, the May S&P Global Flash Manufacturing and Services PMIs were 51.3 and 52.9, respectively. April headline consumer inflation decelerated to 2.3% y/y, while core consumer inflation (excluding energy, food, alcohol and tobacco) slowed to 3.9% y/y. April retail sales decreased 2.3% m/m and 2.7% y/y, below forecasts. Following April’s inflation report, Prime Minister Rishi Sunak announced the much-anticipated general election date as July 4. While the election raises some near-term uncertainty, it should ease as the vote nears and UK stocks likely continue participating in the global bull market. For more, please see our 05/22/2024 commentary, “Sunak Aims to Inflate the Tories’ Election Chances.”

In Japan, April headline consumer inflation decelerated to 2.5% y/y, while core-core consumer inflation (excluding food and energy) slowed to 2.4% y/y. The May Jibun Bank Flash Manufacturing and Services PMIs were 50.5 and 53.6, respectively. Preliminary April imports and exports both rose 8.3% y/y.

The Week Ahead:

The US announces its second estimate of Q1 2024 GDP. The US, UK and eurozone release April money supply figures. The eurozone reports May flash consumer inflation. Japan and the eurozone report April unemployment. Japan releases April industrial production and retail sales. China reports May 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.