What to look forward to this trading week
The trade war between China and the USA continues to weigh down on global equity markets. The JSE closed weaker for a 2nd consecutive week and it looks poised to weaken even more during the week if there is no agreement between the US and China. The good news is that the sell-off in South African Treasury bonds is no longer as aggressive as we saw in the previous week but the risks remain. Investors need to be remain up to date with global events as that remains the main catalyst for the movements on the local bourse.
Your week is summarised below:
- Another subdued Monday is on the cards as we are not expecting any significant data locally and from other major global centres. The USA is expected to release its New Home Sales numbers and the Dallas Fed Manufacturing Index number for June.
- Japan is expected to release its CPI data early on Tuesday morning and later on that afternoon we are expecting the USA to release its Consumer Confidence and Richmond Manufacturing Index data. In terms of earnings, US blue chips Oracle and FedEx are expected to release their earnings results. Locally, Omnia is expected to release its full-year earnings results and we also expect Non-Farm Payrolls numbers for South Africa.
- Early on Wednesday morning New Zealand is expected to release its Trade Balance and Business Confidence numbers. The Bank of England is expected to release its Financial Stability Report which is likely to result in high volatility for the GBP. Later on that afternoon the USA is expected to release Durable Goods, Wholesale Inventories and Trade Balance numbers. We are also expecting Pending Home Sales and the weekly Crude Oil Inventories.
- Japan is expected to release its Retail Sales numbers early on Thursday morning before attention shifts to Europe for CPI data from Germany, Spain and Italy. Major focus will be on US GDP numbers were the economy is forecasted to grow by 2.2% QoQ. We are also expecting the weekly Initial Jobless Claims numbers.
- A lot of economic data is expected on Friday starting off with Unemployment Rate, Housing Starts, Consumer Confidence and Industrial Production data from Japan. Germany is expected to release its Retail Sales and Unemployment Change numbers. The United Kingdom will be in focus at 10.30am as we expect Current Account and GDP data. From Europe we are expecting CPI data and from the USA we are expecting Chicago PMI, Personal Spending and Personal Income. Locally we are expecting Trade Balance numbers for the month of May.
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?
