The JSE all-share index is trading 1.4% firmer in morning trade, following positive global markets which are optimistic that the European Central Bank (ECB) will unveil a fresh new round of quantitative easing at this afternoon’s press conference.
Today’s gains are broad-based although led by the resource index which has added 2.6%, while the industrial index has added 0.97% and financials 0.99%.
In commodities Gold is trading slightly weaker today at $1,288.1/oz. following strong gains for the year thus far and is the chart of the day. Platinum is trading 0.38% firmer to $1,275/oz. and Brent Crudehas added 1.48% to trade at $48.7/barrel.
There is no economic news scheduled locally for today.
In the U.S. weekly unemployment claims are expected at 3:30pm where the expectation is for 301 000 people are expected to have filed for jobless benefits. In Europe, the much anticipated ECB press conference is scheduled for 3:30pm. ECB president Mario Draghi is expected to unveil an expanded bond purchasing program in the region of EUR 550bn with the aim of spurring inflation and economic growth. The ECB is also expected to announce if any changes are to be made to the minimum bid rate at 2:45pm.
Chart of the day
Anticipation that U.S. policymakers may extend the time horizon until the interest rate tightening cycle begins and global attempts to avert a deflationary environment has seen a strong rebound in the price of the precious yellow metal. A daily chart of dollar denominated gold reveals how the price has formed what is commonly known as an inverse head and shoulders formation in technical analysis. The pattern is said to forewarn of a bullish price move following a preceding downtrend and a target is projected by using the height of the pattern which arrives at $1,350/oz.
Spot gold
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