THE WEEK AHEAD

What to look forward to this week:

Markets recorded decent gains over a couple of trading sessions this week as optimism over the US-China trade talks saw investors rush back into riskier assets. A rebound in crude oil prices mainly on the back of the Saudi’s pledge to deepen output cuts has also seen confidence shore up amongst investors. Locally, the picture has been rather mixed as the unemployment rate for December improved marginally to 27.1% from 27.5%, however the number is still very much on the high side. However there has disappointment with regards to Manufacturing Production, Retail Sales and Mining Production which all contracted significantly in December. The rand has weakened considerably against the US dollar but this mainly on the back of gains in greenback. On the JSE, the week’s biggest move was recorded in EOH Holdings which slumped after the announcement that Microsoft was terminating a contract with one of EOH’s subsidiaries. Nonetheless a new week lies ahead, and I have highlighted some of the key events that you should look out for below.

• On Monday we are expecting interim results for Anglo American Platinum and Ecsponent Ltd. We are not expecting any economic data releases locally, and the only significant data that we expect internationally is Core Machinery Orders out of Japan.  

• To kick off Tuesday we are expecting monetary policy meeting minutes out of Australia at 2.30am. Focus will shift to the United Kingdom at 11.30am for the release of Average Earnings Index and Unemployment Rate data. It should be a busy day on the JSE as we are expecting earnings results from AngloGold Ashanti, BHP Group, Comair, Curro Holdings, Kumba Iron Ore, Liberty Two Degrees, Rolfes Holdings and Silverbridge Holdings.  

• On Wednesday we are expecting Statistics SA to release South Africa’s inflation numbers for the month of January. In terms of earnings we are expecting results from Discovery Ltd, Glencore, Super Group, Transpaco and Intu Properties. Most of the market’s attention will be on the South Africa budget speech which is expected to be delivered by the finance minister at 2pm. The only significant data expected on the international front is the US Fed FOMC meeting minutes which are expected to be released at 9pm.

• On Thursday we are expecting results for Adcock Ingram, Bid Corporation, JSE Ltd, Sibanye Stillwater, Truworths International and Woolworths Holdings. There is flurry of economic data expected from global markets. Starting off in Australia we are Manufacturing and Services PMI data at midnight, which will be follower by the release of ITS Unemployment Rate numbers at 2.30pm. Japan is expected to release its Manufacturing PMI data at that same time. From Germany, we are expecting its CPI readings at 9am which will be followed by the release of its Services and Manufacturing PMI numbers at 10.30am. We are also expecting Manufacturing and Services PMI data from other countries in the Eurozone. At 2.30pm, we are expecting the ECB monetary policy meeting accounts which could result in some significant volatility for the euro. At 3.30pm, we are expecting Durable Goods Orders data out of the USA, as well as the Philly Fed Manufacturing Index and Initial Jobless Claims. At 4.45pm, we are expecting Manufacturing and Services PMI and at 5pm we can expect Existing Home Sales data.

• Germany is expected to release its final GDP reading at 9am on Friday. At midday we are expecting CPI data for the Eurozone, and thereafter the only significant data we expect is Retail Sales numbers out of Canada at 3.30pm. On the JSE, we are expecting earnings results from Anglo American PLC, Assore Ltd, British American Tobacco, Blue Label Telecoms and Northam Platinum.

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!