Last week we saw the markets show the strongest signs of a potential reversal, however it is still evident that there is still lots of momentum to the topside. This was particularly evident in Asian indices which experienced massive volatility as they traded within a very wide price range. Locally, we are in the middle of earnings results season and traders need to lookout for these results as that will be the main driver of price action within the short-term. The Rand is also softer therefore they will be an impact on Rand sensitive stocks on the local bourse. Below I have highlighted a few things that traders need to look out for over the course of this week.

• Monday kicked off with flurry of six months earnings results from Vodacom, Tongaat Hulett, Lewis Group and Datatec. It will interesting to see how the market interprets these results. In terms of economic data the day will be slightly subdued. Earlier on we had PPI year-on-year data from Japan which came in at 3.4%, which was higher than the forecast of 3.1%. We are not expecting anything significant to come out during the course of the day, however USDJPY traders might want to take note of the Bank of Japan governor’s speech later on this evening.

• China comes into focus on Tuesday as we expect Industrial Production, Fixed Asset Investment and Retail Sales data. This will be particularly important for metal commodity producers therefore we might a reaction in the JSE listed mining stocks. Later on that morning Germany is expected to release its GDP and CPI data, whilst from the United Kingdom we expect CPI and PPI data. The ECB president is expected to speak that afternoon, which should interesting given the recent upward revision of the Eurozone GDP forecast for the year. This speech will coincide with the release of Eurozone GDP and Industrial Production data, as well as speeches from governors of the US Fed, BOJ and BOE. The USA will close off the day with the release of PPI data. Locally we can expect we are expecting earnings results for SPAR Group and Comair.

• On Wednesday Japan gets the day started with the release of its GDP numbers. Later on that morning the United Kingdom is expected to release its Average Earnings and Unemployment Rate numbers, and locally we are expecting StatsSA to release Retail Sales data. Locally we also expect PPC Limited and Consolidate Infrastructure Group to release their earnings results. The USA will come into focus towards the close as we expect it to release CPI data which should be interesting given how concerned the US Fed is about the recent numbers. We are also expecting Retail Sales numbers from the same country as well as the weekly Crude Oil Inventories numbers.

• AUDUSD traders should look out for Unemployment Rate data from Australia which should provide for some interesting volatility in the currency pair. The United Kingdom is expected to release its Retail Sales numbers later on that morning. In the afternoon we are expecting CPI data for the Eurozone, and from the USA we can expect the weekly Initial Jobless Claims numbers as well as Industrial Production, Capacity Utilization and Import prices data. A couple of Fed governors are expected to speak later on that evening. Locally we are expecting earnings results from Investec PLC and Sappi.

• The ECB is president is expected to speak on Friday morning which should provide for some volatility in the EURUSD currency pair. At midday the Eurozone is expected to release Current Account numbers whilst Italy is expected to release its Trade Balance numbers. Canada is expected to release its CPI data later on that afternoon and from the USA we can expect Building Permits and Housing Starts numbers.

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!