The ANC top committee met with President Jacob Zuma over the weekend to try and persuade him to step down, which was unsuccessful. As of today (Monday), there is news that the committee of top officials will converge once again to decide his fate. Regardless of the outcome there will be reactions to the Rand and equity markets therefore this is an important event to look out for.
Focusing on equity markets it does seem a sell-off is upon us as we saw US equity markets recording their biggest intra-day sell-off on Friday. Other global financial centres have not been spared from the equity rout as indicated by the slide in equity index futures. Traders will need to be on their toes in this week’s trading given the high volatility and current slide in equity markets. Below I have highlighted a few key events that traders need to look out for this week.
- Early on Monday morning we had Chinese Caixin Services PMI numbers which beat estimates. The number was recorded at 54.7 on the back of an estimate of 53.6. During the course of the day we can expect Services PMI from most the countries in the Eurozone as well as the USA. From Europe we can also expect Retail Sales numbers whilst from the USA we are expecting the ISM Non-Manufacturing PMI numbers. Later on this evening ECB President, Mario Draghi is expected to make a speech. In terms of earnings we are still anticipating the release of 2nd quarter earnings results from Adcock Ingram during the course of this week.
- The Australian Reserve Bank is expected to announce its rate decision on Tuesday morning therefore AUD traders need to keep an eye out for those numbers. From Australia we are also expecting Retail Sales and Trade Balance numbers. Later on during the day we are also expecting Trade Balance numbers from Canada and the USA. Locally, we are expecting the SACCI Business Confidence numbers and in terms earnings, we are expecting MTN Group to release its 4th quarter earnings results.
- On Wednesday we expect Sappi to release its 1st quarter earnings results, and in terms of economic data we are expecting South African Gross and Net Reserves data. From Europe we are expecting German Industrial Production data as well as Italian Retail Sales data. From the USA we can expect the weekly US Crude Oil Inventories data.
- Chinese Trade Balance data will kick off Thursday for the financial markets, with the current forecast being a decrease from the prior recorded level. Major focus will be on the Bank of England later on that morning as it is expected to announce its bank rate decision as well as provide insight on its Asset Purchase Facility and Inflation Report. From the USA we expect the weekly Initial Jobless Claims numbers. Locally, we are expecting Mining Production and Manufacturing Production data for South Africa. In terms of earnings we expect UEPS Technologies to release its 2nd quarter earnings, whilst Fortress REIT is expected to release half-year earnings results.
- Friday will start off with the release of CPI and PPI data from China, as well Industrial Activity data from Japan. Later on that morning we are expecting Industrial Production numbers from countries in Europe and particularly from the United Kingdom. We are also expecting Manufacturing Production, Goods Trade Balance and Construction Output data for the United Kingdom. Later on that afternoon Canada is expected to release its Unemployment Rate data and to cap off the week we expect Wholesale Inventories data for the USA.
This week certainly seems like a traders’ playground from a volatility perspective however traders will need to exercise caution when taking positions.
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!