MARKET WRAP: JSE does an about-turn, clawing back some of its recent losses
The ECB decision to stick with its stimulatory policies boosts global markets with risk-on sentiment supporting local banks and retailers
The JSE all share reversed course on Thursday to close firmer as risk-on sentiment improved after the European Central Bank (ECB) re-affirmed its stimulatory policies, for now. The ECB reiterated its stand that interest rates are not set to rise until the summer of 2019, despite an expected economic slowdown in the eurozone over the next few months. The Dow had gained more than 1% by the JSE’s close with European markets also in positive territory. Oanda analyst Craig Erlam said the ECB has taken a very cautious approach amid the slowdown the economy has experienced. “It wouldn’t be outrageous to assume that it won’t take too much for them to delay that first rate hike beyond the latter part of next summer.” The VIX global volatility index has doubled this month with the Dow slipping into the red for the year on Wednesday. Investors have been grappling with a range of uncertainties this month, including rising interest rates, concerns that earnings of US companies might have peaked,...
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