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Monday Morning Wake up Call 26 November 2018

Musa Makoni



What to look forward to this week

The SARB raised the repo rate by 25 basis points to 6.75% on Thursday last week. The rand had strengthened prior to the announcement and has remained firm after the decision. The week was also filled with earnings releases from a number of JSE listed companies which have been mostly mild. Sentiment continues to be driven by global trends which have been mostly negative. Crude oil prices plummeted even further last week which has also ignited fears of a global economic slowdown as demand frails. This week should be relatively quiet particularly from an economic data perspective, but broader global sentiment is expected to remain the catalyst for market direction. Below I have highlighted a few events that traders need to look out for in this week’s trading.


  • There was disappointment early on Monday morning as Japan’s Manufacturing PMI numbers came in weaker than expected. Other than that, we are not expecting any other significant data economic data from the international markets. Locally, we are expected earnings results from Lonmin, Pepkor Holdings and Telkom.


  • Tuesday will be another relatively quiet day in terms of economic data. Locally, we are expecting Business Confidence numbers for the 4th quarter, while we expect Consumer Confidence data from the USA at 5pm. In terms of earnings, we are expecting results from Nampak, Omnia Holdings, Vivo Energy and Vukile Property Fund.


  • On Wednesday morning we are South African Consumer Confidence 3rd quarter data and we are also expecting earnings results from Arrowhead Properties Ltd. On the international front, focus will be on the USA for the release of its Preliminary GDP data at 3.30pm, as well as Goods Trade Balance, New Home Sales, and the weekly Crude Oil Inventories numbers at 5pm.


  • Japan kicks off Thursday with the release of its Retail Sales data at 1.50am. Germany and Spain are expected to release their CPI data that morning, we are also expecting GDP data for France. From the United Kingdom we are expecting Net Lending to Individuals data at 11.30am, while at 3.30pm we anticipate the USA to release Personal Spending, Personal Income and the weekly Initial Jobless Claims numbers. At 5pm we are expecting Pending Home Sales numbers for the USA and at 9pm that evening markets will shift their attention to the release of the Fed FOMC meeting minutes. Statistics SA is expected to release South African PPI data for the month of October. In terms of earnings we are expecting results for eXtract Group, Quantum Foods and Kaap Agri Ltd.


  • Early on Friday morning we are anticipating Unemployment Rate and Industrial Production numbers out of Japan. At 3am China is expected to release its Manufacturing and Non-Manufacturing PMI data, and at 7am we expect Consumer Confidence and Housing Starts data out of Japan. At 9am, Germany is expected to release its Retail Sales data and at midday we expect CPI and Unemployment Rate data for the Eurozone. The USA expected to release Chicago PMI data at 4.45pm. Locally, we are expecting Balance of Trade numbers for the month of October.


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!

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