Your Monday Wake Up Call 28 August 2017

What to look forward to this week

Last week global markets waited in anticipation of the Jackson Hole Economic Symposium which drew the world’s top economists, bankers and academics. Particular focus was on speeches by central bank heads Janet Yellen and Mario Draghi. On the forex side we have seen the reactions as the EUR/USD broke out above 1.19 once again. The USD/ZAR strengthened significantly to briefly break below R13 to the US Dollar. On the JSE, a number of companies released their earnings results last week which were generally subdued. Despite new all-time highs on our major indices, this hasn’t necessarily translated into massive value creation for shareholders of stocks on the JSE. Nonetheless, a new week brings with it new opportunities and with that in mind below are a few things you need to lookout for this week.

Monday is very light day in terms of economic data as we are not expecting any significant data locally or internationally. However commodity and currency traders still have a lot of opportunity given the current weakness of the US Dollar, as well as the current floods in the US which should be saving grace for Brent Crude. On the JSE, Bidvest is expected to release its full year results.

Tuesday kicks off with Household Spending and Unemployment Rate numbers from Japan. Later on that morning we can expect quarterly French GDP numbers as well as Consumer Spending numbers. Towards the close of the markets we are expecting Consumer Confidence numbers from the USA.

Wednesday is quite jam packed in terms of significant economic data. Locally we are expecting the Reserve Bank to release its Money Supply numbers and we can also expect Private Sector Credit extension data. Japan is expected to release its Retail Sales year-on-year numbers and we can expect CPI numbers from Germany and Spain. From the USA, we are expecting the ADP Non-Farm Payrolls (not be confused with the Non-Farm Payrolls) which is expected to show a slight increase. We are also expecting preliminary GDP quarter-on-quarter numbers as well as the weekly Crude Oil Inventories numbers. On the JSE, Sibanye Gold is expected to release its results.

On Thursday we expect to get an indication into the health of one of the world’s biggest economies, as China is expected to release its Manufacturing PMI and Non-Manufacturing PMI numbers. Germany is expected to release Retail Sales numbers and we are also expecting Unemployment Change numbers from the same country. The Eurozone is expected to release its CPI and Unemployment Rate numbers. Quite a number of data is expected from the USA as we are expecting data for Initial Jobless Claims, Personal Spending, Personal Income, Chicago PMI and Pending Home Sales. Locally, we are expecting PPI numbers.

Friday is jobs day yet again as we are expecting the US Non-Farm Payrolls numbers for August. The forecast is that the US economy is going to add 180 000 jobs in August. Along with that number you can also expect the Average Hourly Earnings and Unemployment Rate numbers. On the same day we are expecting Manufacturing PMI numbers from all the major global financial centres therefore it should be a busy day for currency traders in particular.

Be on the lookout for possible trading statements from companies on the JSE as we are in the middle of the earnings reporting period.

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!