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Your Monday Wake Up Call 23 July 2018

Musa Makoni

What to look forward to this trading week

The SARB highlighted that there are significant risks to inflation in the short to medium term in their monetary policy statement last week. As such the central bank kept rates unchanged but this presents a challenge for policy makers given that the US Fed is officially in a rate hiking cycle. Locally, we can expect earnings results from some JSE listed companies which could provide interesting scenarios for potential trades. US earnings results have been trickling in and have come out mostly positive so far. There is key data and earnings coming out this week which will present some interesting catalysts for potential trades. I have highlighted some of the key data below.

  • Monday will be relatively quiet in terms of economic data with the only significant number expected on the day being Existing Home Sales numbers expected at 4pm. Locally, we are expecting earnings results from Anglo American Platinum. From the USA, we are expecting earnings for Halliburton and Alphabet.
  • Early on Tuesday morning we are expecting CPI numbers and Manufacturing PMI numbers for Japan. We are also expecting Manufacturing and Services PMI numbers from countries in the Eurozone as well as the USA later at 3.45pm. Locally, Kumba Iron Ore is expected to release its earnings results following up on its trading statement from last week. Hammerson is also expected to release earnings numbers. From the USA, we are expecting earnings from 3M, Verizon, Lockheed Martin, AT&T, Texas Instruments and Harley-Davidson.
  • Australian CPI data expected early on Wednesday morning could result in some volatility for the Aussie dollar. The day is expected to be relatively quiet as the only significant set of data expected is the weekly Crude Oil Inventories numbers. Locally, we are expecting PPI data from Statistics SA, and in terms of earnings we are expecting numbers from AECI and Capital & Counties. Earnings expected out of the USA include numbers from General Motors, Boeing, QUALCOMM, Visa, Gilead Sciences, Facebook, PayPal, Mondelez International and Ford Motor Corporation.
  • Thursday is a big day for the JSE as index heavyweights, Anglo American PLC and British American Tobacco are expected to release their interim earnings. Intu Properties is also expected to release its earnings results. In Europe, the ECB is expected to announce its interest rate decision at 1.45pm, with the press conference expected to follow at 2.30pm. The USA is expected to release its Durable Goods Orders numbers and the weekly Initial Jobless Claims numbers. From the USA we are expecting earnings from Allergan, Mastercard, Comcast, Raytheon, McDonald’s, Amazon and Starbucks.
  • The USA is expected to release its estimate of GDP at 2.30pm on Friday which will be significant for the US dollar. We are also expecting earnings results for Colgate-Palmolive, Exxon-Mobil and Exxon. Locally we are expecting earnings results for ArcelorMittal.

We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our team, and our independent analysts. Not sure about a trade? Call the 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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