Sonan Investments recaps the biggest market, political and economic news from last week, including UK industrial and manufacturing figures, eurozone and Chinese trade data, and Chinese money supply.
In the US, data were light. Initial jobless claims for the week ending September 4 were 310,000—less than expected and the lowest level since the pandemic began. In the UK, July industrial and manufacturing production rose 3.8% y/y and 6.0% y/y, respectively. On a month-over-month basis, July industrial production rose 1.2% while manufacturing production remained unchanged. In the eurozone, the third estimate of Q2 2021 GDP was revised upward to 2.2% q/q, or 14.3% y/y. Q2 exports and imports rose 2.2% y/y and 2.3% y/y, respectively—both beating expectations. On Thursday, the European Central Bank announced it will slow bond purchases under its emergency quantitative easing program for the rest of the year from the current €80 billion monthly pace to an undetermined “moderately lower” rate. In Japan, the second estimate of Q2 2021 GDP was revised up to 0.5% q/q from the previous reading of 0.3% q/q. Preliminary August money supply (M2) rose 4.7% y/y, less than forecast, while August bank lending increased 0.6% y/y. In China, August consumer prices rose 0.8% y/y and 0.1% m/m, below estimates. August exports and imports rose 25.6% y/y and 33.1% y/y, respectively. August money supply (M2) rose 8.2% y/y, matching expectations.
The Week Ahead:
The US and China report August industrial production and retail sales. The eurozone announces July industrial production and August consumer prices. The UK posts July unemployment data as well as August retail sales and consumer prices. Japan releases July industrial production and August 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.