What to look forward to this trading week
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This weekend was a relatively quiet one given the trend that we have seen over the past few weeks. The major headline was the deteriorating relations between Turkey and the USA which has resulted in the two countries halting visitor visas between the two. The Turkish Lira tumbled on the back of that news and in the short-term we expect more weakness in that currency. Last week was a good week for the local bourse as the ALSI futures hit consecutive sessions of all-time highs. US markets also continued to record fresh all-time highs for the greater part of last week and with major US companies expected to release earnings this week, we might yet again see more record highs on US indices. Nonetheless, it’s a new week and below I have highlighted a few key events that traders need to take note of this week.
- In terms of economic data Monday will be subdued with the only significant number being the Chinese Caixin Services PMI number which came in worse than expected. Markets in USA, Canada and Japan will be closed today.
- Tuesday kicks off with Current Account numbers from Japan which are expected to show a small contraction from the previous recording. We also expect French and Italian Industrial Production numbers, along with German Trade Balance numbers. The United Kingdom comes into focus as we expect Manufacturing Production, Goods Trade Balance, and Construction Output.
- Wednesday is another subdued day for global economic data as we only expect Core Machinery Orders numbers from Japan, and US JOLTS Job Openings later on during the day. The US Fed will release its FOMC Meeting Minutes later on that evening. Locally we expect PSG Group to release its half-year earnings results.
- On Thursday South African production numbers come into focus as we expect Mining Production and Manufacturing Production numbers. On the JSE we are anticipating Taste Holdings to release its half-year results. From the USA we are expecting PPI numbers, as well as the weekly Initial Jobless Claims and Crude Oil Inventories numbers. ECB President Mario Draghi is expected to make a speech at 4.30pm on the day. We also have a couple of US Fed governors speaking around the same time.
- Chinese Trade Balance data kicks off Friday for global markets. Switzerland is expected to release its PPI data later on that morning before attention shifts to the USA in the afternoon for the release of CPI and Retail Sales data. Later on that evening we also expect another set of US Fed governors to make speeches.
The week is relatively subdued in terms of economic data. The strength of the US Dollar will be key therefore keep a close eye on the US Dollar Index which should inversely affect Gold and other metal commodity prices.
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!
Musa Makoni | Trading Specialist at GT247.com
Follow @Makoni_Henry