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Morning Market Scoop 26 February 2019


Morning Market Scoop 26 February 2019

In our morning market scoop:

  • This weeks economic factors to look out for.

“What u Looking at?”

What’s the scoop? Trade Negotiations & Trump/ Kim Summit

With all the excitement of the 2019 Oscars behind us we look forward to some economic and political events shaping out this week.

  • We have seen some surprise winners at the Oscars this year and hopefully the surprises do not continue into the Trade Negotiations this week.

The big picture – It is widely expected that some sort of agreement is imminent with the U.S-China trade negotiations. With President Trump extending the 1st of March deadline which shows optimism from the US. The next hurdle seems the be to get the Chinese to agree to keep the Yuan (CNY) stable. The biggest stumbling block would be how the Chinese would enforce this moving forward, if they agree to this.

One other factor to keep an eye out for this week will be the long awaited second summit between Donald Trump and Kim Jong Un. The first historic meeting between the two superpowers were held back in June 2018 where the North Korean leader pledged to denuclearize North Korea.

  • The summit will take place in the Vietnamese capital of Hanoi on the 27th of February to the 28th of February 2019.

Monday saw Trump also voice his opinion on Twitter about the Oil prices getting out of control, “Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!” – Donald J. Trump

 Notable companies reporting earnings are:

South Africa:  Aveng Group Limited (AEG), Cashbuild Limited (CSB), Hulamin (Limited (HLM), WBHO (WBO) and Shoprite Holdings Limited (SHP)

What does all this mean for me?

  • Market participants will keep a close eye on developments from the trade negotiations and U.S-Korean Summit. The U.S markets are expected to experience volatility to any news flowing from these two events this week so take care.