What to look forward to this trading week

Bond yields, particularly US Treasury yields continue to be the primary focus for global markets. Higher yields have resulted in a firmer US dollar and as a result we have seen the Rand trading mostly weaker despite a small recovery towards the end of last week. The JSE trended mostly lower last week and the push factors were mostly external. Earnings results from JSE listed companies have been relatively disappointing and this has also aided in dragging the index lower. Nonetheless it is new week and uncertainty will be the norm as markets try to find a catalyst for direction. I have highlighted a few key events below that traders need to look out for in this trading week.

• Monday we will be very subdued in terms of economic data as the US and UK markets will be closed for a holiday. Locally we also are not expecting any economic data however we expect earnings results from Reunert, Telkom and Tongaat Hulett.

• On Tuesday trading activity should be back to normal, and from the USA we are expecting Consumer Confidence numbers for May as well as the Dallas Fed Manufacturing Index. Japan is expected to release its Unemployment Rate early that morning. Locally we are not expecting any data or earnings results.

• Japan kicks off Wednesday with the release of its Retail Sales numbers and Consumer Confidence data. In Europe, German is expected to release its Retail Sales and preliminary CPI numbers. Attention will shift to the US in the afternoon for the release of its preliminary GDP numbers as well as the ADP Non-Farm Employment Change. Locally, Spar Group and Nampak are expected to release their interim earnings results.

• Thursday gets started with the release of Industrial Production numbers out of Japan, before attention shifts to China for the release of Manufacturing and Non-Manufacturing PMI data. From Europe we are anticipating the release of its CPI estimate and Unemployment Rate numbers. Locally, we expect StatsSA to release PPI numbers for April as well as Trade Balance data. Later on that afternoon we are expecting the weekly Initial Jobless Claims and Crude Oil Inventories numbers out of the USA. A couple of FOMC members are expected to speak later on that evening which could result in some volatility for the US dollar.

• On Friday most of the focus will be on the Manufacturing PMI numbers that we are expecting out of China, Japan, the Eurozone and the USA. The USA is expected to release the all-important Non-Farm Payrolls numbers on Friday, along with its Average Earnings and Unemployment Rate data. Locally, we are expecting the release of ABSA Manufacturing PMI and Naamsa Vehicle Sales numbers. In terms of earnings results we are expecting results from Life Healthcare and Mr Price.

Keep an eye on the US Treasury yields as most of the market direction globally could stem from the movement in those benchmarks.

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?