THE WEEK AHEAD

What to look forward to this week:

It has been a busy week on the JSE in terms of earnings releases as several companies have released their financial results. The results have been a mixed bag with a couple of good surprises here and there. Most the market’s attention was on the South African budget speech which was delivered on Wednesday. The rand has been volatile due to this budget speech as well as movements in the greenback which remains tentative to the ongoing US-China trade talks. The USA and China are in the middle of the second round of trade talks and global investors wait in anticipation of a resolution which will benefit broader global economic growth. The US Fed released its FOMC meeting minutes on Wednesday and they highlighted that an increasing number of participants are seeing the case for lesser policy tightening from the Fed. Some market metrics are already factoring in the probability of a Fed rate cut in 2020 instead of another cut in 2019. Locally, there are still some blue-chip stocks yet to release the results therefore we can expect some more action in the coming week. Below I have highlighted a few key events to look out in the coming week.

• Monday kicks off with the release of earnings results from Accentuate Ltd, Clientele Ltd, Hammerson and Sasol. In terms of economic data, the only significant data we expect is Final Wholesale Inventories out of the USA at 5pm.

• On Tuesday, Japan starts off the day with the release of the Bank of Japan’s Core CPI readings at 7am. In the United Kingdom, the Bank of England will testify before national treasury on the economy and inflation outlook in what is termed the Inflation Report Hearings at midday. From the USA, we are expecting Building Permits and Housing Starts data at 3.30pm, and at 5pm we expect the CB Consumer Confidence reading as well as the Richmond Manufacturing Index data. On the JSE, we are expecting earnings from Aveng, Cashbuild, Hulamin, WBHO and Shoprite.

• Earnings results from Advanced Health Ltd, AECI Ltd, Capital and Counties, NEPI Rockcastle and Torre Industries will be in focus on Wednesday on the JSE. On the international front, major focus will be on Goods Trade Balance and Preliminary Wholesale Inventories numbers out of the USA at 3.30pm. At 5pm we expect the release Factory Orders, Pending Home Sales and Crude Oil Inventories data out of the same country.

• Thursday begins with the release of Industrial Production and Retail Sales numbers out of Japan at 1.50am. China is expected to release its Manufacturing and Non-Manufacturing PMI numbers at 3am, and at 7am we expect Housing Starts data out of Japan. At 9am we are expecting Germany to release its CPI data, before attention shifts to the US for the release of its Advance GDP numbers at 3.30pm as well as the weekly Initial Jobless Claims numbers. At 4.45pm the USA will also release its Chicago PMI readings. Locally, we are anticipating Stats SA to release South African PPI data at 11.30am. On the JSE, we are expecting earnings from Growthpoint Properties, Imperial Logistics, Massmart Holdings, Santam and Spur Corporation. 

• On the economic data front Friday is going to be a relatively busy day. At 1.30am we are expecting the Tokyo Core CPI and Unemployment Rate numbers out of Japan, and we also expect Final Manufacturing PMI data out of the same territory at 2.30am. From China, we expect the Caixin Manufacturing PMI data at 3.45am. During the day we are expecting Final Manufacturing PMI readings out of most the countries in the Eurozone. At midday we expect the CPI Flash Estimate for the Eurozone as well as its Unemployment Rate numbers. Canadian GDP data is slated for release at 3.30pm, which is also when we are expecting Personal Spending and Personal Income numbers out of the USA. At 4.45pm are expecting the Final Manufacturing PMI numbers also from the USA and it 5pm we anticipate the release of the ISM Manufacturing PMI data which should conclude the week.

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!