What to look forward to this trading week
The week gone by was a week full of surprises, from the coup-not-coup in Zimbabwe and the volatility in global and local indices, traders were definitely kept on their toes. This morning there is news out of German that Angela Merkel’s bid to form a coalition may hit a brick wall. This might result in the Euro coming under pressure in the short-term which inversely means a relatively stronger US dollar. Locally, it will be a busy week in terms of earnings results from JSE listed companies. Below I have highlighted a few things that are important for traders to look out for in this week of trading.
- Monday starts off with earnings results from Pioneer Foods, Barloworld, Mr Price and DAWN. In terms of economic data, Monday will be relatively subdued as the only significant set of data will be the German PPI and speeches from Mario Draghi which should result in some volatility for the Euro.
- On Tuesday we expect Reunert, Rhodes Food Group and Life Healthcare to release earnings results. Given the current economic conditions in South Africa it will be key to see how these results come out. The United Kingdom will be in focus later on that morning as we expect data with regards to Public Sector Borrowing and the Inflation Report. To end the day we expect the USA to release Existing Home Sales numbers.
- On Wednesday we expect earnings results from Hospitality Property Fund and we also expect StatsSA to release inflation data for South Africa. The USA is expected to release Durable Goods Orders data, as well as the weekly Crude Oil Inventories and Initial Jobless Claims numbers. Later on that evening the US Fed is expected to release minutes from their monetary policy meeting.
- New Zealand kicks off Thursday with the release of Retail Sales data just after midnight. Later on that morning we expect the final GDP numbers for Germany as well as for the UK just after midday. During the course of the day we are expecting Manufacturing and Services PMI data from the major global financial centres. Canada is expected to release its Retail Sales numbers and we are also expecting monetary policy meeting minutes from the ECB. Locally, PPC Limited, which is the focus of a couple of suitors for a potential takeover, is expected to release its earnings results. The South Africa Reserve Bank is expected to announce its interest rate decision that afternoon.
- Friday will be relatively subdued in terms of earnings and economic data. Early on we expect Trade Balance numbers for New Zealand and Manufacturing PMI numbers from Japan, as well as from the USA later on.
We are in the middle of earnings season therefore expect trading statements from JSE listed companies to pop up from now and then. The Rand will continue to play a big factor on the overall direction of local indices therefore that is an indicator that traders can’t afford to neglect.
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!