What to look forward to this trading week

Global market trends continue to play a bigger factor in the direction of the JSE compared to local economic or political factors. The proposed steel tariffs by Donald trump have sent global equity markets tumbling and before that, the new Fed chairman’s testimony also resulted in jitters across global financial markets. Traders and investors can’t afford to ignore the impact of these external factors as their impact has become quite significant. This week should be interesting on both the domestic and international front as we are expecting readings into the health of the South Africa’s economy through the GDP data, as well the USA’s economy on Friday via the Non-Farm Payrolls. I have highlighted a few key events below that traders need to look out for this week.

• Merafe Resources released full-year results early on Monday morning to kick off the week. Earlier on China released the Caixin Services PMI data which missed by a whisker. During the course of the day we are also expecting Services PMI numbers from most of the countries in the Eurozone as well as the USA. We are expecting Retail Services data for the Euozone whilst the USA is also expected to release the ISM Non-Manufacturing PMI numbers.

• On Tuesday we are expecting earnings results from First Rand, Brimstone Investments and Texton Property Fund. However major focus will be on South African GDP data which is expected at 11.30am. For the AUD currency traders we are expecting Retail Sales, Current Account data as well as the interest rate decision from the Australian Reserve Bank. From the USA we are Factory Orders numbers towards at the close of the JSE.

• Australian GDP data will kick off Wednesday for the financial markets. Locally we are expecting earnings results from RMB Holdings, MMI Holdings and Mpact. In addition to that we also expect Gross and Net Reserves data as well as the SACCI Business Confidence indicator. The Eurozone is expected to release its GDP data before attention shifts to the USA for the ADP Non-Farm Employment Change numbers and Trade Balance numbers. The Bank of Canada is expected to announce its interest rate decision at 17.00 CAT, which is also the same time that we expect Crude Oil Inventories numbers out of the USA.

• Japan is expected to release GDP, Current Account and Bank Lending data early on Thursday morning, and shortly after that we expect China to release its Trade Balance numbers. Later on that morning we are expecting German Factory Orders data before attention shifts to Europe for the interest rate decision from the ECB, which will be followed by a press conference shortly thereafter. From the USA we expect the weekly Initial Jobless Claims numbers. Locally we are expecting earnings results from Aspen, MTN, Standard Bank, Sanlam and Capital & Regional. In terms of economic data we are expecting local Mining Production data.

• On Friday the only set of data expected locally is earnings results from Stadio Holdings. From China we are expecting CPI and PPI data, before attention shifts to Japan for the interest rate decision from the Bank of Japan as well as the press conference shortly thereafter. Germany is expected to release Industrial Production and Trade Balance numbers, whilst the United Kingdom is expected to release Manufacturing Production and Goods Trade Balance data. Later on that afternoon market participants will be focused on the release of the Non-Farm Payrolls and Average Hourly Earnings data.

The big story over the weekend was the Listeriosis outbreak determined to have emerged out of a facility owned by Tiger Brands in Polokwane. As a result we are seeing some pressure on the Tiger Brands stock price, and if there is legal action taken in future one could expect some more pressure on the stock. This pullback could provide some great buying opportunities but traders need to be cautious and keep an ear out for any news regarding the stock.

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!