What to look forward to this trading week

Donald Trump’s decision to reinstate sanctions on Iran was the major headline for last week as markets tried to digest the long-term impact of that decision. The JSE struggled for direction initially but it had a strong performance towards the end of the week. The Rand, along with other emerging market currencies found some relief after the US dollar eased from the strong rally that we had seen over the previous week. This week promises to be quite interesting if the action in the bond market over the past week is anything to go by. Below I have highlighted a few key events that are key to watch in this week’s trading.

• In terms of economic data, Monday will be relatively quiet as we are not expecting any significant data internationally. Locally, we are expecting earnings results from Sappi, Vodacom, Astral Foods, Balwin Properties, Lonmin and Netcare. Therefore from that front it should be an interesting day on the local bourse.

• Tuesday will be busier in terms of economic data as we expect key Chinese data namely, Industrial Production, Fixed Asset Investment and Retail Sales data. Later on that morning we are GDP data from Germany and CPI numbers from France. Focus will shift to the United Kingdom for the release of the Average Earnings Index and Unemployment Rate data. From the Eurozone, we are expecting GDP data, and later on that afternoon we are expecting Retail Sales data from the USA. Locally, we are expecting Unemployment Rate data from StatsSA.

• Japan is expected to release its GDP numbers early on Wednesday morning along with its Industrial Production numbers. From the Eurozone we are expecting CPI data as well as the individual CPI numbers for Germany. The USA is expected to release its Building Permits, Housing Starts, Industrial Production and Capacity Utilization data. The USA is also expected to release its weekly Crude Oil Inventories numbers. Locally, we are expecting earnings results for Transaction Capital, and in terms of economic data we are expecting Retail Sales data.

• On Thursday, Datatec and Oceana are expected to release their earnings results on the JSE. In terms of economic data, we are expecting CPI and PPI data out of China, and down under we are expecting Unemployment data from Australia. The USA is expected to release the weekly Initial Jobless Claims numbers.

• Index heavyweight, Richemont is expected to release its earnings results on Friday which should set the tone for the JSE on that day. We are expecting Trade Balance and Current Account data for the Eurozone that morning, whilst Germany is expected to release its PPI data. For the currency traders, we expect Canada to release its CPI and Retail Sales numbers which will conclude the week.

A meeting is expected to take place between Steinhoff International and bankers in London this coming Thursday. The ability of Steinhoff International to secure funding at this meeting could have major implications on the ability of the business to continue as a going concern therefore shareholders need to take note.

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!