Global equities ended higher amid strong economic data and political wrangling. The new Trump Administration dominated the media. As always, our political commentary is non-partisan, focused solely on assessing policies’ potential impact on stocks.
President Trump made headlines by signing several executive orders and memos on healthcare, trade, immigration and other policy areas. US data showed continued economic strength, but were mixed compared with expectations. IHS Markit’s preliminary January manufacturing and services Purchasing Manager Indexes (PMIs) exceeded expectations at 55.1. Non-US data were light this week.
UK Q4 GDP met expectations, rising 2.4% annualized on strong retail, hotel and restaurant spending. In the eurozone, IHS Markit’s January composite PMI hit 54.3, narrowly missing forecasts, while M3 money supply beat expectations at 5.0% y/y. Japanese December import and export growth both accelerated. Most countries release January manufacturing and service surveys. The US reports November home prices, December personal income and spending and January employment. The eurozone posts Q4 GDP, January CPI and December retail sales. The Fed and the Bank of England release interest rate decisions.