Fisher Investments Reviews: Last Week in Markets—August 14 – August 18

US and UK retail sales, eurozone and Japanese GDP, and eurozone, UK, and Japanese inflation data are highlighted in Fisher Investments' recap of the biggest market, political, and economic news from last week.

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Relevant topic timeline:

8/29/2023

Stock Market Today: Dow Set to Open Higher; 3M, Best Buy, and Other Premarket Movers; Bitcoin Stalls; More China News

Global markets are watching for the latest round of retailer earnings reports as well as the release of the July Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics, while European indexes are being boosted by a jump in commodity prices linked to China's stimulus measures.

8/30/2023

Market awaits US data and leadership

The US dollar experienced a major technical reversal due to a weaker JOLTs report, leading to a drop in US interest rates, while market positioning played a role in the price action; the focus now shifts to personal consumption figures and US jobs data, with the euro and sterling firm but most other G10 currencies softer, and emerging market currencies mixed. In Asia, most large bourses advanced, but Europe's Stoxx 600 fell after rallying in previous sessions, while US index futures traded softer; European bonds are selling up, gold is consolidating, and oil prices are firm. Australia's CPI slowed more than expected, China is expected to release the August PMI, and Japan reports July retail sales. The US dollar has seen no follow-through selling against the yen, yuan, or Australian dollar, while the euro and sterling staged impressive price action. The JOLTS report saw the dollar and US rates reverse lower, and today the US reports advanced merchandise trade figures for July, with the Canadian dollar as the worst performing G10 currency yesterday.

9/9/2023

Dollar Extends Gains as US Growth Outperforms, Keeping Fed Hawkish Ahead of Key Inflation Data

The US dollar's strength in the foreign exchange market, along with discussions of de-dollarization, highlights the divergence between the US and other major economies. The Dollar Index is on an eight-week rally, reaching a record high in international payments, while the euro's share has declined to a record low. In the week ahead, the US CPI and the ECB meeting are expected to be major events, with the US showing signs of inflation and weaker demand, and the euro facing challenges amid stagnation and inflation. China's CPI and PPI have shown some improvement, but the focus will be on yuan loans and real sector data. The eurozone's focus will be on the possibility of a rate hike by the ECB and the release of July industrial production figures. Japan's household consumption continues to fall, and the country may experience a contraction in Q3. The UK will release employment data and GDP details, while Canada will see data on existing home sales and the CPI. Australia will release its August employment data, and Mexico's peso positions may continue to adjust due to the winding down of the currency forward hedging facility.

9/15/2023

Chinese Economic Data Beats Expectations, Boosting Asian Markets

Chinese economic data showing strength in consumer spending and manufacturing activity boosted Asian markets, with Hong Kong's Hang Seng Index rising 0.8% and Tokyo's Nikkei 225 surging 1.1%, despite concerns about a slowdown in China's economy.

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Posted 8/21/2023, 8:51:55 PM