What to look forward to this week:
There has been some exuberance in this week’s trading across most equity markets including the JSE. The rally was triggered by a surprise beat in Chinese economic data which was released during the course of the week, which gave investors confidence that the world’s largest economy was still decently healthy. The rand also recouped most of its losses from the previous week thanks to the postponement of South Africa’s sovereign rating decision by Moody’s, as well as a softer US dollar. With the next round of trade talks between China and the USA having started in Washington, market participants are increasingly bullish on the high probability that sound agreements will be reached in the negotiations. The JSE continues to derive most of its moves from global sentiment therefore traders need to increasingly pay attention to news concerning the trade talks and major central banks’ policies. Below I have highlighted some of the key events that traders need to keep an eye on in the coming week.
- Monday gets off to a lukewarm start in terms of economic data as we do not expect any significant data releases. Japan kicks off the day with the release of its Consumer Confidence and Economy Watchers Sentiment data at 7.00am. From Germany we are expecting its Trade Balance data at 8am, and thereafter the only significant data expected is Factory Orders data from the USA at 4pm.
- No significant data is expected locally on Tuesday. From the USA we are only anticipating the release of the JOLTS Job Openings data at 4pm.
- Wednesday will be a busier day starting off in Japan where we are anticipating the release of Bank Lending, Core Machinery Orders and PPI data at 1.50am. We are also expecting Machine Tool Orders data out of Japan at 8am. Focus will shift to the United Kingdom at 10.30am for the release of its GDP, Manufacturing Production, Goods Trade Balance, Construction Output and Industrial Production data. The European Central Bank is expected to announce its interest rate decision at 1.45pm which will be followed by the press conference at 2.30pm. At that same time, we also expect the USA to release its CPI data. At 8pm, we are expecting the US Fed to release its FOMC meeting minutes from its last meeting. We are not expecting any data releases locally.
- On Thursday morning at 3.30am, China is expected to release its CPI and PPI data. German is also expected to release its CPI data at 8am, while France is anticipated to release similar readings at 8.45am. From the USA we are expecting PPI data to be released at 2.30pm, as well as the weekly Initial Jobless Claims at that same time. Locally, we are expecting Mining Production and Manufacturing Production data at 11.30am and 1.00pm respectively.
- China will be in focus on Friday morning as it is slated to release its Trade Balance numbers. From Europe we are expecting Industrial Production data which will be followed by Import Prices data out of the USA at 2.30pm which should conclude the week.
We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our GT247.com team, and our independent analysts. Not sure about a trade? Call the GT247.com Trading Desk on 087 940 6102 and bounce your idea off one of our dedicated traders.
Until next week, we wish you profitable trading!