Your Monday Wake Up Call

What we can look forward to this trading week:

It has been a weekend of mixed emotions and uncertainty mainly due to the terror attacks in London. Clearly the security threat on major financial centres in Europe is increasing and there will be stringent security measures taken going forward. On a lighter note, we are still trying to figure out how to use the word “covfefe” correctly, and hopefully the good folks from Oxford can decipher the meaning for us soon. While they figure that out, here are a few things you should keep an eye out for this week.

• Locally, the big number to look out for is the GDP data that we are expecting on Tuesday. Analysts are forecasting growth of 1% year-on-year, the prior recorded level was 0.7%. From the unemployment rate data released last week, it is quite evident that our economy is not growing fast enough to absorb all the people of working age. Further evidence of this will be shown in the Manufacturing Production data which is expected on Thursday. The forecast for that data is that it will reflect a decrease of -1.6% year-on-year, after a prior recording of 0.3%.

• On Monday, Standard Bank will release their PMI number for South Africa, and on Wednesday, the SARB is expected to release the gross reserves and net reserves numbers for the country. As per usual, we expect more headlines on the political front but unfortunately nobody can forecast the timing. Therefore always be in the lookout for anything that could adversely affect your positions, particularly the Rand

• On the international front, the European Central Bank is expected to announce its rate decision on Thursday. The consensus is that they will leave rates unchanged but it will be key to hear their outlook on quantitative easing since the US Fed has already announced plans of trimming its balance sheet. The Australian Reserve Bank is also expected to announce its rate decision on Tuesday.

• From the USA, you can expect the weekly initial jobless claims and crude oil inventories. To start off the week the US will release its ISM Non-Manufacturing PMI and Factory Orders data on Monday. With President Trump having pulled the US out the Paris climate deal and former FBI director expected to testify this week, expect some volatility in the US Dollar, and inversely related products such as Gold and Platinum.

• The big numbers out of China this week is the trade balance data expected on Thursday and inflation numbers expected on Friday. Investors, particularly commodity producers will be looking for signs of growth from the world’s biggest consumer of raw commodities.

• In general, it is a light week in terms of impact data but nonetheless you can expect some volatility in the markets.

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.

Musa Makoni | Trading Specialist at GT247.com

Follow @Makoni_Henry

Wishing you a profitable day of trading.

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