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Your Monday Wake Up Call 27 August 2018

Musa Makoni

Last week was mainly dominated by earnings from some JSE listed blue chip stocks. Evidence of the tough retail operating environment has been highlighted in most of the earnings that we have seen from stocks such as Woolworths, Shoprite and Massmart. Inflation has creeped up as indicated in the latest inflation figures released by Statistics SA last week. This in conjunction with a weaker rand will continue to erode the buying power of consumers which could lead to another lean period in the retail space.


  • We are not expecting any significant data on Monday from either the international markets or locally. Markets in the United Kingdom will be closed for a bank holiday.
  • On Tuesday morning we are anticipating the release of Core CPI data from the Bank of Japan. At 2.30pm the USA is expected to release its Goods Trade Balance and Preliminary Wholesale Inventories data, while at 4pm we expect the CB Consumer Confidence numbers. Locally, we are expecting earnings from Advanced Health, RCL Foods and Master Drilling. 
  • Japan kicks off Wednesday with the release of Consumer Confidence data. We are expecting the GDP data for France at 8.45am, and at 2.30pm the USA is expected to release preliminary GDP data and Pending Home Sales numbers. We are also expecting the weekly Crude Oil Inventories numbers at 4.30pm. In terms of local earnings, we are anticipating results from Growthpoint Properties, Murray and Roberts, NEPI Rockcastle and Net 1 UEPS.
  • Early on Thursday morning Japan is expected to release its Retail Sales numbers for July. At 8am we are expecting German CPI data and we also expect Spain’s inflation numbers at 9am. The USA is expected to release the weekly Initial Jobless Claims numbers at 2.30pm, along with Personal Spending and Personal Income data. Locally we are expecting Statistics SA to release PPI data for the month of July, and we are also anticipating Trade Balance numbers. In terms of earnings we are anticipating results from Assore, Santam and Torre Industries. 
  • Japan is expected to release its Unemployment Rate and Industrial Production numbers. Major focus will be on China for the release of Manufacturing and Non-Manufacturing PMI. At 8am, Germany is expected to release its Retail Sales numbers. In Europe we are expecting CPI numbers from France, Italy and the Eurozone itself. The Eurozone is also expected to release its Unemployment Rate data. The only significant data expected out of the USA is the Chicago PMI numbers. Locally, we are expecting results for Bell Equipment, Grindrod Ltd, Old Mutual and Stadio Holdings. 

The meeting between the USA and China did not result in any immediate adjustments to the tariffs that have already been introduced, as a new set of tariffs kicked in last week. The outlook is still not favourable for emerging markets as a result of the trade war, and the prior risks remain.

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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