YOUR MONDAY WAKE UP CALL

What to look forward to this week

Last week was another rough week for the JSE All-Share index as it fell 2.25% mainly on the back of movements in blue-chips such as British American Tobacco and Reinet. The move lower in these stocks was ignited by the proposed ban of menthol cigarettes by US regulators. On the international front, Brexit continues to grab headlines as the British Prime Minister faces challenges selling the new deal. The sterling pound should remain volatile within the short-term until there is more certainty with regards to the next course of action. Expect volatility in the US dollar as traders price in the probabilities of a rate hike at the next US Fed FOMC meeting. With that in mind I have highlighted the key events to look out for over the coming week.

• We are expecting a flurry of earnings releases on Monday from JSE listed companies. Astral Foods, Barloworld, Dipula Income Fund, Netcare, Pioneer Foods and The Foschini Group are all expected to release earnings results on Monday. There is no significant economic data expected locally or internationally.

• On Tuesday morning, Germany is expected to release its PPI data at 9am. The only other significant data expected that day is Building Permits and Housing Starts data out of the USA at 3.30pm. In terms of local earnings, we are expecting results from Mr Price, Reunert, Rhodes Food Group and Stor-Age Property.

• South Africa’s inflation numbers will be in focus on Wednesday morning as we expect Statistics SA to release CPI data for the month of October at 10am. Initial estimates suggest inflation YoY will slow down marginally from the prior recorded level. In terms of earnings we are anticipating results from Consolidated Infrastructure Group, Coronation Fund Managers, Hospitality Property Fund, Lewis Group, Life Healthcare and Transaction Capital. On the international front, we are expecting Durable Goods Orders data from the USA at 3.30pm, as well as the weekly Initial Jobless Claims numbers. At 5pm, we expect Existing Home Sales data and the weekly Crude Oil Inventories numbers at 5.30pm.

• On Thursday we are expecting earnings releases from PPC Limited, Tiger Brands and Tsogo Sun Holdings. However, most of the attention will be on the South African Reserve Bank for the interest rate decision. Initial estimates suggest that the central bank will leave rates unchanged at 6.5%. US markets will be closed for a thanksgiving therefore global market activity will be relatively subdued.  

• We are expecting Manufacturing PMI data from Japan early on Friday morning. During the day we also expecting Manufacturing and Services PMI numbers from France, Germany, the USA and the Eurozone. Canada is expected to release its CPI and Retail Sales data at 3.30pm.

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!