What to look forward to this trading week
The US economy is well and healthy as indicated by the Non-Farm Payrolls numbers released on Friday which exceeded estimates by a big margin. As a result we saw US equity markets firm on Friday, and this morning Asian markets are also tracking higher. Locally South African GDP data released on Tuesday also surprised as it beat most estimates by quite a healthy margin. Local earnings have been relatively mixed but a couple of the big stocks have reported good profit margins. Most of the blue chip stocks on the JSE have reported their earnings results therefore we won’t be expecting much activity in that regard until the end of the next quarter. I have highlighted a few key events below that traders need to look out for this week.
- AVI Limited and Rand Merchant Investments released their earnings results early on Monday morning and that is the only set of data that we are expecting locally. There is no significant economic data expected on Monday from the international markets therefore expect the day to be relatively subdued.
- On Tuesday we are expecting Japan to release its PPI and Tertiary Industry Activity data early in the morning. Locally we are expecting Manufacturing Production data which is forecasted to increase significantly year-on-year. Later on that afternoon most of the attention will turn to CPI data expected out of the USA, and early forecasts suggest inflation will slow down from their prior recorded level.
- Early on Wednesday morning we are expecting data out of China namely Industrial Production, Fixed Asset Investment and Retail Sales data. From Japan we are expecting Core Machinery Orders data. Later on that morning we expect Germany to release its CPI data whilst the Eurozone is expected to release its Industrial Production and Employment Change data. At 2.30pm we are expecting the USA to release its Retail Sales and PPI data, and at 4.30pm we expect the weekly Crude Oil Inventories. Locally the only set of data expected is the BER Business Confidence indicator.
- On Thursday we expect earnings results from Old Mutual, Remgro and Metair Investments. That morning we also expect local Mining Production data including the individual Gold and Platinum Production data. On the international front the Swiss central bank is expected to announce its interest rate and later on that afternoon we can expect the weekly Initial Jobless Claims numbers out of the USA.
- Japanese kicks off Friday for the financial markets with the release of Industrial Production data. At midday we expect the final estimate of European CPI and later on that afternoon we are expecting the USA to release Building Permits, Housing Starts, Capacity Utilization data which should cap-off the week for the financial markets.
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!