Earnings releases on the JSE haven’t produced a blockbuster stock rally as most investors would love to see, instead it is becoming more apparent how increasingly difficult it is for most listed companies to remain on growth trajectory and profitable. With capital flows data showing net outflows out of the JSE, it is clear that confidence on most local listings has deteriorated. The ECB was very dovish in its press conference on Thursday which sent shivers across most equity markets. US jobs data on Friday also disappointed which might incentivise the US Fed to follow the ECB’S footsteps and be more patient with potential rate hikes. With the trade negotiations between the USA and China still ongoing, there is still a lot of unknowns despite the progress made. The following week could yet again bring more surprises, so traders should remain on the lookout. I have highlighted the key events to look out for below:
- Monday kicks off with Machine Tool Orders data out of Japan at 8am. At 9am Germany is expected to release its Industrial Production and Trade Balance numbers, while at 2.30pm the USA is expected to release its Retail Sales data. In terms of earnings on the JSE we are expecting results for AVI Limited, ABSA Group, Brimstone Investment Corporation, Merafe Resources, Old Mutual and Sea Harvest Group.
- On Tuesday we are expecting earnings results from FirstRand, Quilter and Rand Merchant Investment Holdings. In terms of international economic data major focus will be on the United Kingdom for the release of GDP, Manufacturing Production, Construction Output, Goods Trade Balance and Industrial Production. At 2.30pm, the USA is expected to release its CPI data.
- Wednesday kicks off with the release of PPI and Machinery Orders data out of Japan at 1.50am. At midday we are expecting Industrial Production data out of the Eurozone at midday, and at 2,30pm we expect Durable Goods Orders and PPI data out of the USA. Locally we are expecting earnings results for African Rainbow Minerals, Growthpoint Properties, Mpact Ltd and RMB Holdings.
- China is in the spotlight on Thursday morning as we expect Fixed Asset Investment, Industrial Production, Retail Sales and Unemployment Rate data at 4am. From the USA we are expecting the weekly Initial Jobless Claims data as well as New Home Sales data at 3.30pm and 4pm respectively. Locally, we are expecting the release of January’s Manufacturing Production and Mining Production data. In terms of earnings we are expecting results for Capital & Regional Plc, Exxaro Resources, Metair Investments and Metrofile Holdings.
- The Bank of Japan is expected to announce its interest rate decision on Friday morning which will be followed by a press conference afterwards. The bank is expected to leave rates unchanged. The Eurozone is expected to release its CPI data at midday while at 3.15pm we expect Capacity Utilisation and Industrial Production out of the USA. In terms of earnings results we expect earnings from Bell Equipment, Astoria Investments, Grand Parade Investments, Orion Minerals, Remgro and EPE Capital Partners.
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!