The World Economic Forum is behind us and judging from the press conferences and interviews, it seems all the right things were said. We will have to wait and see how long it takes for the implementation to take place. Locally, the Eskom enquiry brought to light the extent of corruption at the state-owned entity, and subsequently it was downgraded further into junk status by ratings agencies. Local equity markets have been rather mixed as Rand strength has supported financial and retail stocks, whilst on the other hand Rand hedges have come under significant pressure. The Rand is at its strongest level since 2015 and one can’t rule out more strength given the current weakness of the US dollar and possible positive political sentiment locally. Along with the Rand, I have compiled a list of possible events that traders need to look out for this week.

• In terms of economic data, Monday will be relatively subdued. From the USA we are expecting Core Price Index, Personal Spending and Personal Income data at 3.30pm. Locally we are expecting Adcock Ingram and Hudaco to release their earnings results.   

• On Tuesday morning we expect Japan to release Retail Sales, Unemployment Rate and Household Spending numbers. The Bank of Japan is expected to release its reading of CPI the same morning. The Eurozone is expected to release its GDP numbers as well as other members of the union. Germany is expected to release its CPI numbers that morning and later on in the afternoon we can expect Consumer Confidence numbers from the USA. Locally the Reserve Bank is expected to release Money Supply and Private Sector Credit data.

• Japanese Industrial Production data kicks off Wednesday for the financial markets with the forecast being a slight increase from the prior recorded level. China will be in focus as it is expected to release both Manufacturing PMI and Non-Manufacturing PMI data that morning. From the Eurozone we are expecting CPI data whilst Germany is also expected to release its Retail Sales numbers. The USA is expected to release the ADP Non-Farm Employment Change numbers later on that afternoon. This is a significant number as it regarded as a good indicator of the Non-Farm Payrolls expected on Friday. The USA is also expected to release Pending Home Sales and Crude Oil Inventories numbers. Later on that evening investors will shift their attention to the US Fed for the FOMC statement and interest rate decision. Locally we expect Trade Balance numbers as well as BER Consumer Confidence data.

• On Thursday, focus will be on Manufacturing PMI data from the world’s biggest financial centres starting with Japan and the Caixin data for China. Locally we expect the release of the ABSA Manufacturing PMI data as well as electricity consumption and production data. From the USA we expect the weekly Initial Jobless Claims numbers along with Construction Spending, Unit Labour Costs and Non-Farm Productivity data.

• On Friday the markets will be waiting in anticipation of the Non-Farm Payrolls and Average Hourly Earnings numbers from the USA which are expected at 3.30pm that afternoon. The USA is also expected to release its Unemployment Rate and Factory Orders numbers. Earlier on that morning we do expect the United Kingdom to release Construction PMI numbers, as well PPI data from Europe.

US listed companies are in the middle of their earnings reporting season therefore we might see fresh all-time highs on US indices if the earnings continue to beat estimates. Locally, we are also getting a stream of earnings results and trading statement releases therefore traders should keep an eye out for them. The US dollar index will be in focus given that we expect the all-important Non-Farm Payrolls on Friday as well as the FOMC statement before then.

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!