Again, it’s hard to form a strong opinion on what is most likely to be the overall theme for the week ahead. The coronavirus is a serious issue and is impacting global markets and sentiment. The situation is confusing and scary. This is forcing money back into the the U.S. in a search for safety.
The news this past weekend has been dominated by the Coronavirus. It seems that the rate of infection is accelerating and that it is managing to reach other countries, with both Japan and Australia confirming cases of infection. Markets might react poorly.
We’ve had continued issues around Load Shedding and various other economic ailments, and thus our Rand has weakened somewhat. This weaker Rand narrative is what we think is likely to drive our market in the coming week.
Welcome back load shedding. And also welcome back war in the Middle East. The combined impact of these two factors will likely make it a very difficult week for the Rand.
And just like that, it’s Christmas time. The market will likely be very quiet during the next week or two, but do not let the low volume environment fool you, there will still be opportunities.
Now that the Moody’s news is out of the system and we can once again place our trust in the charts, there are some interesting opportunities brewing for the week ahead.