JSE closes weaker ahead of Trump inauguration, as markets await policy details
The JSE closed flat on Thursday after the European Central Bank (ECB) kept rates unchanged, with investors cautious ahead of Donald Trump’s inauguration on Friday. The ECB earlier reaffirmed its December decision to continue to buy €80bn of assets per month until March 2017 and €60bn between April and December, causing the euro at first to record gains on the dollar, but then to weaken in later trade. Trump has provided few details on his election promises of ramping up fiscal expenditure and tax reform. Hawkish comments by US Federal Reserve chairperson Janet Yellen failed to support the dollar or the Dow decisively on the day. Yellen said on Wednesday the Fed was aiming to increase rates "a few times a year" until 2019. That would bring the federal funds rate to 3% from 0.75% at present, with the market expecting at least three rate increases in 2017. Gold shares were lower despite spot gold inching above $1,200 an ounce in intraday trade. At the JSE’s close the gold price was 0.4...
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