S&P downgraded South Africa’s local debt to junk and Moody’s placed it on review for a downgrade. Initially the USD/ZAR weakened sharply in reaction to the news but we have seen the local currency recover slightly this Monday morning. The SARB kept interest rates unchanged and indications continue to show that food inflation is the biggest contributor to the inflation basket. The SARB forecasts that we might see another fuel price increase in December which will put more pressure on consumers. Nonetheless, it’s a new week and there is some interesting opportunities to profit from over the course of this week. Below I have highlighted a few key events that traders can look out for this week.

• Monday kicked off with earnings results from Tiger Brands which showed decent increases in profitability for the year. In terms of economic data it will be a subdued day with the only significant data expected being New Home Sales out of the USA.   

• Tuesday will be more active in terms of economic data compared to Monday with primary focus being on speeches from US Fed governors as well as the Bank of England’s governor. The USA is expected to release its Goods Trade Balance, Consumer Confidence and Wholesale Inventories numbers. Locally we expect earnings results from Nampak and Omnia Holdings.

• Naspers will be in focus on Wednesday as they are expected to release their half-year earnings results. The results are largely expected to be good due to the impact of their shareholding in Tencent Holdings which released a good set of results recently. eXtract Group is expected to release its full-year results. In terms of economic data we expect Retail Sales numbers out of Japan whilst later on that morning we expect CPI numbers from Germany and Spain. We are expecting GDP numbers for France that morning and later on that afternoon, similar numbers for the USA. From the USA we can also expect Pending Home Sales and the weekly Crude Oil Inventories. The OPEC meeting is expected to get underway on that day and as such we can expect some volatility in the commodity.

• Thursday will be a busy day in terms of economic data. The day starts off with Preliminary Industrial Production numbers out of the Japan and from China we are expecting both the Manufacturing and Non-Manufacturing PMI numbers. Later on that morning we expect GDP and Retail Sales numbers out of Switzerland, Retail Sales from Germany and CPI data from France. That afternoon the Eurozone will be in focus as they are expected to release CPI data. From the USA we expect the weekly Initial Jobless Claims, as well as Personal Spending and Income data. Locally we are also expecting PPI numbers from StatsSA, and Trade Balance numbers.

• Friday is the first Friday of the new month therefore that means its jobs day. The market will be waiting in anticipation of the Non-Farm Payrolls numbers out of the USA. Before then we expect CPI data out of Japan as well Manufacturing PMI and Capital Spending numbers. From China we expect the Caixin Manufacturing PMI and we also expect Manufacturing PMI numbers from the United Kingdom, Italy, German, France, the Eurozone and the USA. Locally, Sygnia is expected to release its full-year earnings results.

Keep an eye out on the US dollar index as the direction in the Rand may be influenced more by this indicator instead of local factors. Naspers results will be a big event on Wednesday therefore if you are trading the ALSI futures and Naspers itself please watch out for the reaction.

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!