What to look forward to this week
Image Credit: The Telegraph
It’s Monday and yet again we have woken up to news of another missile firing from North Korea. Similar to what we saw last week, Gold is firmer on safe haven buying and metals are looking very bullish. USA Non-Farm Payrolls disappointed on Friday which saw the US Dollar sliding immediately after the release of the data, however it managed to recover thereafter.
Image Credit: Time.com
Hurricane Harvey has managed to grab global news headlines and there are new forecasts of another Hurricane heading towards the Caribbean. The cost of the repairs to the US economy is expected to be significant and the effects will definitely be felt for a long time to come. On a positive note, it is a brand new week which means that we have another opportunity to profit from the markets. With that in mind, we have highlighted a few important events that need to be on your radar this week.
- Monday is expected to be subdued because of the closure of US markets for the Labor Day holiday. Nonetheless the UK is expected to release its Construction PMI numbers which is forecasted to increase slightly from the previous recording. You can also expect PPI numbers and Spanish Unemployment Change numbers.
- On Tuesday Services PMI numbers come into focus as the major global financial centres are expected to release their readings. The Australian Reserve Bank is expected to announce its rate decision which is expected to remain unchanged. The Eurozone is expected to release its Retail Sales numbers as well its revised estimate of quarter-on-quarter GDP. US markets will be open again for trading and we are expecting them to release Factory Orders data which is forecasted to show a contraction of -3.1%. Two FOMC members are expected to speak and in light of the recent jobs data it will be interesting to hear their take on the Fed’s direction. Locally, we are expecting StatsSA to release GDP numbers for South Africa.
- Wednesday kicks off with Australian GDP data which is expected to show a slight increase. Germany is expected to release its Factory Orders numbers and from Italy we can expect Retail Sales data. Canada and the USA are expected to release their Trade Balance numbers, and from the USA we can also expect Services PMI and the ISM Non-Manufacturing PMI numbers. Canada is expected to announce its interest rate decision which is largely expected to remain unchanged. Locally we are expecting the SACCI Business Confidence Index numbers, and Sanlam is expected to release its earnings results.
- On Thursday Australian Retail Sales and Trade Balance numbers get the day started. The ECB will also be in focus as they announce the interest rate decision, with the press conference expected to follow shortly thereafter. You can also expect the weekly Initial Jobless Claims numbers and Crude Oil Inventories numbers. Locally, Manufacturing Production and Mining Production numbers will be on the spotlight. African Rainbow Minerals which has grabbed the attention of investors lately, is expected to release its earnings results.
- Friday starts off with GDP numbers from Japan as well as Trade Balance data from China. The United Kingdom will be releasing key data namely, Manufacturing Production, Goods Trade Balance, Construction Output and Industrial Production data. Germany is expected to release Trade Balance numbers and from France we can expect Industrial Production numbers. Canada is expected to announce its Unemployment Rate and Capacity Utilisation numbers.
It seems we are set for a lot of volatility this week therefore we can expect lots of trading opportunities. Be on the lookout for possible trading statements from companies on the JSE as we are still in the middle of the earnings reporting period.
Read our Upcoming Results Roundup for insights by Mark Ingham.
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
