Market Update: Thurs, Feb 28, 2019 | LPL Financial Research
China, Japan feeling the effects of U.S.-imposed tariffs. In China, official Purchasing Managers’ Index (PMI) data showed manufacturing factory activity hit a three-year low as new export orders shrank for a ninth straight month. However, total new orders moved back into expansionary territory, suggesting future activity may rebound. Japan, meanwhile, saw its factory output drop by the most in a year thanks in large part to a decline in Chinese demand. Adding to the country’s woes was a report that showed retail sales in January slowed sharply from the previous month, dashing hopes that domestic demand would help to offset weaker external demand in Japan’s export-oriented economy. Still, though aggregate economic data are coming down from last year’s highs, clarity on the U.S.-China trade situation and Brexit(hopefully in the near term), and a more patient Federal Reserve (Fed), should help to sustain healthy levels of global economic growth over the next 12-18 months, if not longer.
Fourth-quarter GDP beats estimates. After a month-long delay, investors finally have more context on the level of economic growth last quarter. Gross domestic product (GDP) rose 2.6% in the fourth quarter, above consensus estimates for a 2.2% gain. Consumer spending contributed 1.9% to the growth rate, while business spending added 0.8%. Net exports were a 0.2% drag on growth, the biggest detractor from an otherwise solid quarter. We’ll dive into details of the report later today on the LPL Research blog.
Click Here for our detailed Weekly Economic Calendar
- GDP Report (QoQ, Q4 2018, Initial and First Revision)
- Germany CPI Report (Preliminary, Feb)
- Japan Jobless Rate (Jan)
- Japan Tokyo CPI Report (Feb)
- Caixin China Manufacturing PMI (Feb)
- Core PCE (MoM, Dec)
- Markit US Manufacturing PMI (Feb)
- ISM Manufacturing PMI (Feb)
- University of Michigan Sentiment Index (Feb)
- Japan Consumer Confidence Index (Feb)
- Germany Unemployment Claims Rate (Feb)
- Eurozone Unemployment Rate (Jan)
- Eurozone CPI Report (Feb)
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.
All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
All company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All performance referenced is historical and is no guarantee of future results.
This research material has been prepared by LPL Financial LLC.
To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.
The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured. These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.
Index data obtained via FactSet
For Public Use – Tracking # 1-827325 (Exp. 2/20)