What to look forward to this week.
With Chinese and other Asian markets closed for the Lunar New year holiday, this week has seen relatively lower trading volumes across most asset classes. The biggest gainer in this week’s trading has been the US dollar which has recouped most of its losses recorded in the week prior. The gains in the greenback have been due to rising US Treasury yields as investors seek riskier assets. The JSE has struggled in this week’s trading as overall global sentiment has remained largely subdued. The week ahead might bring fresh perspectives as we are expecting significant economic data releases which have the potential to swing momentum materially. Below I have highlighted key events that you can expect in next week’s trading,
- All the attention will be on the United Kingdom on Monday for the release of GDP, Manufacturing Production, Business Investment, Construction Output, Goods Trade Balance and Industrial Production data. We are not expecting any economic data locally however we are expecting the changes to the MSCI Emerging Market index to be announced which could lead to forced buying or selling of some JSE listed stocks if they are included or excluded.
- On Tuesday, Statistics SA is expected to announce South Africa’s Unemployment Rate figures for the 4th quarter at 11.30am, while at 1pm we expect Manufacturing Production data for the month of December. In terms of earnings we are anticipate earnings results from KAP Industrial Holdings. On the international front, the only significant data that we expect is Tertiary Industry Activity and Machine Tool Orders out of Japan.
- There could be significant volatility for the New Zealand dollar on Wednesday morning as the central bank is expected to announce its rate decision at 3am that morning. At 11.30am, we are expecting CPI and PPI data out of the United Kingdom, and at midday we expect Industrial Production data for the Eurozone. The USA is expected to release its CPI data at 3.30pm, followed by the weekly Crude Oil Inventory numbers at 5.30pm. Locally, we are expecting Retail Sales data for the month of December at 1pm. In terms of earnings results we are expecting earnings from DRD Gold, Harmony Gold, Pan African Resources and South32 Ltd.
- Japan kicks off Thursday with the release of its GDP data at 1.50am. Shortly thereafter we are anticipating the release of Chinese Trade Balance data before attention shifts to Germany at 9am for the release of its GDP numbers. At midday we are expecting flash GDP data for the Eurozone. The USA is expected to release its Retail Sales and PPI data at 3.30pm. Locally, we are expecting Mining Production and Gold Production numbers for the month of December. In terms of earnings we anticipate earnings from Italtile Ltd.
- Chinese CPI and PPI data will get Friday started for the financial markets at 3.30am and from Japan we expect Revised Industrial Production numbers at 6.30am. At 11am, we expect Italian Trade Balance data followed by Retail Sales out of United Kingdom at 11.30am. From the USA, we expect the Empire State Manufacturing Index, Capacity Utilisation and Industrial Production data at 3.30pm. On the JSE, Gold Fields is scheduled to release its full-year results.
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!