21st January 2015
Gold bullion climbed to surpass the $1,300 level for the first time since August, driven higher on expectations that central banks around the world are preparing to boost stimulus packages, creating demand for less volatile assets.
Most market movers will be looking ahead to Thursday’s widely anticipated announcement from the European Central Bank (ECB). The bank is expected to unveil an unprecedented bond-buying programme that will herald the start of quantitative easing in the single currency region.
The majority believe that the ECB won’t disappoint and will reveal plans that will amount to 550 billion euros or more to purchase government bonds with new money, a sentiment which has driven shares higher over the past few days.
Stocks in Europe are holding steady today, after a four-day winning streak helped lift European indices to their highest levels in seven years.
Overnight, shares in Asia rose to wipe out most of the gains suffered on Monday. The Shanghai Composite Index climbed almost five per cent, its biggest advance since 2009.
Equities may have further scope to rise if the ECB unveils a larger than expected bond buying programme. However, if the bank undersells the plan, it’s likely that volatility will increase and for stocks to take a turn lower.
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