It’s a new week and we under the administration of a new president. There is definitely a new sense of renewed hope and optimism both within the financial markets as well as social circles. All the right things were said in the State of the Nation Address by President Cyril Ramaphosa on Friday, but more focus particularly from the ratings agencies will be on the implementation of the speech’s action points. Last week the financial markets were quite volatile with the ALSI futures recording a 2000 point jump in one session on Wednesday and subsequently coming off by 400 points the very next day. It’s important not to get caught up in the euphoria locally and still be prudent when taking positions. Below I have highlighted a few things that traders need to look out for in this week of trading.

• Japan released better than expected Trade Balance numbers early on Monday morning and subsequently we have seen the Japanese equity markets rally on the back of that data. That is the only set of significant data expected today because of the closure of Chinese and US markets for a holiday. In terms of earnings results, locally we are expecting results from Anglo American Platinum, Liberty Two Degrees and Super Group.

• Tuesday is expected to be subdued from in terms of economic data however there will be some action in terms of earnings results from JSE listed stocks. We expect earnings results from AngloGold Ashanti, BHP Billiton, Discovery, NEPI Rockcastle and Imperial Holdings. On Tuesday we also expect Trade Balance numbers from Switzerland as well as German PPI data.

• On Wednesday attention will be on the CPI data which is expected to be released by StatsSA at 10am that morning, the estimate for the year-on-year number is 4.4%. Along with that we are also expecting earnings results from Bid Corp, Adcock Ingram, Capital and Counties, Glencore and JSE Limited. In terms of economic data we are expecting Manufacturing and Services PMI numbers from most of the countries in the Eurozone as well as the USA. The United Kingdom is expected to release its Average Earnings Index and Unemployment Rate numbers. From the USA we can also expect Existing Home Sales data as well as the FOMC meeting minutes later on that evening.

• On Thursday focus will be on the 2^nd estimate of GDP data expected from the United Kingdom. From the USA we are expecting the weekly Initial Jobless Claims as well as the Crude Oil Inventories numbers. Another busy day awaits in terms of local earnings as we expect earnings results from Sibanye Gold, Anglo American, British American Tobacco, Intu Properties, Truworths, Woolworths, Blue Label Telecoms and Massmart.

• To cap off the week CPI data will be in focus as we expect inflation readings for Japan, Europe and Canada. Germany is expected to release its GDP data whilst later on that day we are expecting some of the US Fed governors to make speeches. In terms of earnings results we are expecting Northam Platinum to release its earnings results. 

It is definitely a busy week in terms of earnings results on the JSE. There will be some volatility therefore traders need to remain cautious as the results are released. Chinese markets are closed until the 21^st of February therefore there won’t be much activity from that market until then. The budget speech for South Africa is scheduled for Wednesday afternoon, the markets and rating agencies will be watching this number with keen interest.

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!