The Week Ahead

07 February 2014

Our regular look at the news making the headlines, using our market insight information and analysis tools.

By Shaun Murison, IG Market Analyst

View market data

Company announcements

Dividends

Economic catalysts

Market overview

Consensus misses on manufacturing data out of the US and the UK witnessed global markets start the week on the back foot amid concerns around the fragility of the current economic recovery.

The news adds to the fears catalyzed by the recently received manufacturing data out of China which indicated minor industry contraction for the first time in six months.

Global sentiment improved in the latter part of the week, after the European Central Bank (ECB) and Bank of England (BoE) left benchmark interest rates unchanged. ECB President Mario Draghi stated that the central bank was prepared to take further action in an attempt to counteract low inflation in the Eurozone.

Employment data out of the US on Friday witnessed 113 000 non-farm jobs being added to the payroll last month, while the unemployment rate fell to 6.6%. Although a miss on consensus estimates, markets currently appear committed to the rebound from recent weakness.

Source: IG Insight, as of  07/02/2014 16:45

Top movers

Source: IG Insight, as of 07/02/2014 12:00

Harmony Gold heads the worst performers list after a fire at its Doornkop mine and subsequent rock fall claimed the lives of at least eight people. A relatively flat dollar denominated gold price and short-term strength in the rand has haltered the recent gains in local gold mining shares. 

ArcelorMittal witnessed a favourable anticipation and response to its full year results as it rose in excess of 15% over the course of the week. 2013 was a difficult year for the company after a fire at its Vanderbijl Park operations hampered production in the first quarter. ArcelorMittal also realised a 1.8 billion rand impairment on its Thabazimbi mining asset, as well as struggled to finalise a pricing agreement with Kumba Iron Ore. Investors are optimistic that these are setbacks of the past and are hopeful that the largest steel producer in Africa can now continue to grow earnings moving forward. 

The Investec share price has reacted positively to news that it may be selling their Kensington mortgage business. The UK-based mortgage business was infamously bought in 2007 shortly before the global economic crisis was realised. Investors have welcomed the news as it has been and underperforming asset for Investec.

Broker consensus

Brokers view on the markets.

Click to view this week's broker consensus

 

 

Spotlight on equities

An analysis of upcoming company announcements, using our market insight information and analysis tools:

Kumba Iron Ore Ltd

Barclays Group Africa Ltd

Woolworths Holdings Ltd

 

 

 

Educorner

Leverage

Learn how you can use leverage to gain a large exposure to a financial market with a relatively small initial outlay. Leverage can magnify your profit, but we explain that it’s important to use it with care, because it also increases your risk of loss.

View the guide now

Try our platform

Follow one of the links below for a quick look at our web-based platform and the range of markets on offer.

Domestic account

  • Explore our platform with no login
  • Search for your favourite shares and open deal tickets
  • Access charts and technical analysis tools

International account

  • Explore our platform with no login
  • Search for your favourite shares and open deal tickets
  • Access charts and technical analysis tools

Open a demo

If you're interested in finding out more about the range of markets available and the functionality of our trading platform, you can open a demo account. 

Domestic account

  • Trade with R100,000 practice funds for two weeks
  • Access charts and view our range of local markets
  • Trade online or via our mobile apps

International account

  • Trade with £10,000 practice funds for two weeks
  • Access charts and view live prices
  • Trade online or via our mobile apps

IG provides an execution-only service. The material on this website does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. This communication must not be reproduced or further distributed. The price levels provided are derived from ProRealtime Charts (IT-Finance)

Broker Consensus

Data provided by I-Net Bridge

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.