What to look forward to this trading week
To say last week was a tough week for equity markets would be putting it lightly, the sell-off was quite sharp and more than likely it caught most traders by surprise. There are definitely lessons to be learnt but it is important not to dwell too much on what was gained or lost in the period. I don’t think we are out of the woods yet because there are a couple of events this week that have the potential to swing the markets therefore traders and investors still need to be on high alert. Below I have highlighted a few events that traders need to look out for this week:
- Monday will be relatively subdued as we expect Japanese markets to be closed for a holiday. Locally we are not expecting any economic data releases and the only significant data during the day will be CPI data from Switzerland.
- On Tuesday the focus will be on Unemployment Rate for South Africa which is still of a big concern given that the prior number was recorded at 27.7%. That same morning focus will also be on the United Kingdom which is expected to release its CPI and PPI data. Outside of that there is we expect Machine Tool Orders and PPI numbers out of the Japan.
- Wednesday is a big day for world equity markets as we expect CPI data from the USA. Concerns over CPI and its implications with the US Fed’s interest decision have sent fears into global equity markets, and hence the sell-off that we saw last week. We also expect Retail Sales numbers out of the USA to be released simultaneously with CPI data. Before the big CPI numbers are released we do expect GDP data out of Japan, Germany, Italy and the Eurozone. Later on after the JSE close we expect Crude Oil Inventories out of the USA. loca
- Machinery Orders data out of the Japan will get the day started for the financial markets on Thursday. Australia is expected to release Unemployment Rate data and later on that morning we expect Trade Balance numbers out of the Eurozone. Out of the USA we expect PPI numbers along with the weekly Initial Jobless Claims and Industrial Production numbers.
- The United Kingdom will be in focus again on Friday as we expect the release of Retail Sales data. Later on towards the close we can expect Building Permits and Housing Starts numbers from the USA which should bring a close to this weeks’ trading.
Keep a close eye on the US 10-year Treasury yields, higher yields imply a stronger US dollar which is bad news for the Rand. The VIX is also another instrument that traders can use to gauge how volatile US markets are, as we have seen over the past week this has huge implications for equity markets. A decision on President Zuma’s fate could be reached at any point this week therefore that is another big event that traders need to be on the lookout for.
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!