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Your Monday Wake Up Call 20 August 2018

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Musa Makoni
Your-Monday-Wake-Up-Call

Last week was another tough one for the JSE All-Share index as it lost 1.83%. Emerging markets remain out of favour and locally this has been compounded by weaker metal commodity prices which have seen miners trading significantly weaker. The big weighting of Naspers on the index continues to skew some of the daily moves significantly but overall the sentiment has been relatively bearish on the entire market. This week, several JSE listed blue-chips are expected to release earnings and these numbers could potentially be the main driver of price action excluding any external shocks. I have highlighted some of the key events that traders need to look out for in this week of trading.

Below we detail what you can expect for this trading week each day of the week:

 

  • Another muted Monday is on the cards with regards to economic data however there is some action via earnings from JSE listed firms. We are expecting earnings results from AngloGold Ashanti, Shoprite and Sasol.
  • More earnings are expected on Tuesday as we expect results for BHP Billiton, Imperial Holdings, Fortress REIT and Harmony Gold. There is nothing significant coming out in terms of economic data either locally or globally.
  • On Wednesday morning we can expect some movements on the New Zealand dollar as we expect the release of Retail Sales data. We are also expecting Retail Sales data for Canada at 2.30pm. From the USA, we are expecting Existing Home Sales at 4pm and the weekly Crude Oil Inventories numbers at 4.30pm. Markets will be awaiting the release of the Fed’s FOMC meeting minutes from the meeting which they held last week. The Fed has already indicated that they are going to hike rates in September and December in the previous meeting minutes. Locally, we are expecting earnings results from Bid Corporation, Blue Label Telecoms, Italtile and South32. Statistics SA is expected to release CPI numbers for July and the estimate is that YoY inflation will increase to 5.1%. 
  • Thursday will be a busy day on the economic data front as we are expecting Manufacturing and Services PMI numbers from all the major global financial centres. From the USA we are also expecting the weekly Initial Jobless Claims numbers and New Home Sales data. The Jackson Hole Symposium, which is an annual meeting of major global central bankers gets underway in the USA. Locally, we are expecting earnings from Woolworths, Massmart and Sibanye Stillwater.
  • Durable Goods Orders out of the USA will be the primary focus on Friday as the market seeks more clues on the health of the US economy. Fed Chair, Jerome Powell is expected to speak at the Jackson Hole Symposium which could potentially shift the US dollar significantly. 

 

The USA and China are expected to meet in order to find a solution to the current trade disputes which have left jitters in global markets. Risks still loom for Turkey as the currency remains weak and more than likely its sovereign rating is going to get downgraded in the short-term. Both these scenarios present considerable risks for South Africa therefore traders need to look out for any news out of these 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!

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