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Your Monday Wake Up Call 3 September 2018

Musa Makoni

A brand-new week and month is upon us. Trade wars and the Turkish lira dominated the news headlines in the month of August and certainly does not look like there is an end in sight for now. With a new set of US tariffs set to kick in US$200 billion worth of Chinese goods, we can expect a similar if not worse retaliation from China to offset the impact. Locally, the rand continues to weaken as emerging market currencies remain out of favour with global investors. The All-Share index slowed down last week as trade concerns reignited market jitters. I have highlighted a few key events below that traders need to look out for in this week of trading.


  • US markets will be closed for the labour day holiday on Monday therefore we are not expecting much direction from that market. We are expecting Manufacturing PMI data from countries in the Eurozone including the United Kingdom and locally, we are expecting earnings results for Bidvest, Texton Property Fund and Sun International. In terms of economic data, we are expecting the Naamsa Vehicle Sales numbers for the month of August.
  • On Tuesday morning the Reserve Bank of Australia is expected to announce its interest rate decision which could present some volatility in the Aussie dollar. The United Kingdom is expected to release its Construction PMI data at 10.30am and at 11am we expect PPI data for the Eurozone. The USA is expected to release Manufacturing PMI numbers at 3.45pm, and shortly thereafter at 4pm we expect ISM Manufacturing PMI and Construction PMI data from the same country. Locally, we are expecting earnings results for Discovery Limited. In terms of economic data, we are expecting Statistics SA to release GDP numbers at 11.30am.
  • Australia is expected to release its GDP numbers early on Wednesday morning. From China we anticipate the release of Caixin Services PMI numbers, and we are also expecting Services PMI numbers from most of the countries in the Eurozone. Europe is expected to release its Retail Sales numbers at 11.00am, and from the USA we are expecting Trade Balance numbers for the month of July. The Bank of Canada is expected to announce its interest rate decision at 4pm that afternoon. On the JSE, we are expecting earnings results for Assore, MMI Holdings, SA Corporate Real Estate and WBHO.
  • On Thursday morning we are expecting Trade Balance numbers for Australia which are supposed to show a decrease in trade surplus. At 8am, Germany is expected to release its Factory Orders numbers and later that afternoon attention shifts to the USA for the release of the ADP Non-Farm Employment numbers at 2.15pm. At 2.30pm, we expect the weekly Initial Jobless Claims numbers from the USA, along with Final Services PMI, ISM Non-Manufacturing PMI, Factory Orders and Crude Oil Inventories data. Several earnings releases are expected from the JSE namely from FirstRand, Sanlam, Distell Group, Spur Corporation and Trencor. We are expecting South Africa’s Current Account numbers at 10.00am that morning.
  • We expect more earnings results for JSE listed companies on Friday, namely from RMB Holdings, African Rainbow Minerals, MAS Real Estate and Northam Platinum. At 8am that morning we are expecting the reserve bank to release Gross and Net Reserves data for South Africa. China is expected to release its Trade Balance numbers early on Friday morning, and we are also expecting Trade Balance and Industrial Production numbers for Germany and France at 8am that morning. At 11am we are expecting Revised GDP numbers for the Eurozone. Friday is jobs day, we are expecting the all-important Non-Farm Payrolls numbers at 2.30pm. At that same time we also expect US Unemployment Rate data and Average Hourly Earnings data.

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!

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