What to look forward to this trading week

It’s a brand new week and with it comes a chance to look at things with a relatively new perspective. The market is still struggling to gain significant momentum in a single direction which creates a bit of uncertainty for momentum traders. Perhaps more attention will be on the Rand which has weakened considerably against the greenback over the past month mainly due to the US dollar strengthening. Rand hedge stocks have been underperforming since December, but perhaps with the Rand weakening this might be a turning point for them. It’s a 4 day trading week on the JSE as markets will be closed for Human Rights Day on Wednesday. With that in mind I have highlighted a few events that traders need to look out for in this week of trading.

Particulars of earnings releases and economic data below. 

• Advtech and Sun International are expected to release their earnings results on Monday which is the only significant set of data coming out locally. On the international markets Japan releases Trade Balance numbers which showed an increase in the trade deficit. Later on this morning we are expecting Industrial Production and Trade Balance data from Italy, as well as Trade Balance data from the Eurozone itself.

• We expect South African CPI data on Tuesday morning as well as Current Account Balance numbers. The year-on-year number is forecasted to decrease to 4.1% which is well within SARB’s target band. The United Kingdom is also expected to release CPI data at 11.30am that morning and locally we are expecting Afrocentric Investment Corp to release its interim earnings results. 

• South African and Japanese markets will be closed for a holiday on Wednesday however there will still be action from other international markets. The United Kingdom is expected to release its Average Earnings Index, Unemployment Rate and Public Sector Net Borrowing data. The USA is expected to release Current Account and Existing Home Sales data, along with the weekly Crude Oil Inventories data. At 8pm CAT we are expecting the US Fed to announce its interest rate decision followed by the FOMC press conference shortly afterwards. The New Zealand central bank is expected to announce its rate decision at 10pm CAT.

• Early on Thursday morning we expect Unemployment Rate data from Australia, and during the course of the day we can expect Manufacturing and Services PMI data from the world’s biggest financial centres. The United Kingdom is expected to release Retail Sales data at 11.30am whilst at locally we are also expecting the same set of data at 1pm. At 2pm attention will shift to the UK for the announcement of Bank of England’s interest rate decision as well as the press conference shortly thereafter. From the USA we can also expect the weekly Initial Jobless Claims numbers.

• To start off Friday we are expecting National Core CPI numbers from Japan and later on that afternoon Canada is expected to release CPI and Retail Sales data. The USA is expected to release its Durable Goods Orders numbers, and on the local front we are expecting earnings results from Grindrod.

The outcome of the US Fed’s interest rate decision will have big implications for global equity markets therefore traders need to watch the decision closely. Traders also need to keep an eye on the US dollar index as its continued strength will have an adverse impact on the Rand.

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!

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