Market wrap: a Federal Reserve plan to buy US Treasurys and more mortgage securities dragged US markets out of the red and into the green overnight. The major indexes had been languishing until the afternoon announcement but finished the day up 1.2 - 2%. Banks and gold miners were the big beneficiaries, with indexes for both sectors spiking hard on the news, up 9 - 13%.
The price of gold, which has been slipping all week, spiked almost $60 in late electronic trading, recently climbing above $946. Oil caught some of the updraught, paring earlier losses to recently trade off 2% at $49.35. Base metals closed mixed but all saw bounces after the Fed announcement.
Our futures predict another bright open here, with the SPI closing up 31 points at 3500.
We can expect a big bounce in gold miners this morning at the open, with three weeks of gentle decline in the p.o.g. wiped out in an hour. Trading is likely to be volatile - lovely! Financials may also benefit from more good news for the sector. Good luck to all.
