Trading Specialist Musa Makoni at GT247.com breaks down our trading week
Although we tried not to think about it, the ANC NEC meeting which took place over the weekend was firmly in the back of our minds. It is quite clear that the head of government has no intentions of stepping down before his term expires. The good thing is the market is open and it’s a brand new week, & with it comes another opportunity to make some profits. With that in mind, here are some significant events & data that you can look forward to in this week of trading.
- Locally, investors are closely watching Moody’s for a possible ratings announcement on South Africa. Moody’s still has the country’s rating 2 notches above sub-investment grade. A downgrade will put more pressure in the Rand which is still recovering from the effects of the recent downgrades from Fitch and S&P.
- In terms of economic data, we are expecting Trade Balance numbers on Wednesday. On Thursday, the Unemployment Rate data is expected and the forecast is that it will be recorded at 27.0%. On the same day Barclays Africa will release the Manufacturing PMI number, and on Thursday, the Naamsa Vehicle Sales numbers will be in focus.
- We cannot discount the influence of political factors, therefore we will be keeping our ears on the ground for any news particularly in relation to the President, as that could potentially move the markets.
- Globally, the US, UK & Chinese markets will be closed on Monday but normalcy prevails from Tuesday onwards with the exception of China. From the USA, the all-important Non-Farm Payrolls is back in focus again this Friday. The outcome of the number might give reassurance to investors with regards to the timing of the US Fed interest rate increases. A better than expected number will give more incentive for a June rate hike.
- Besides the Non-Farm Payrolls number, you can expect the weekly initial jobless claims and crude oil inventories numbers. On Thursday, you can expect Manufacturing PMI numbers from the Eurozone and the USA.
- China is expected to release its Manufacturing PMI numbers on Wednesday. Commodity producers globally will be watching this number closely as it will give some insight into the health of the world’s biggest consumer of commodities.
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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