German Chancellor likely to approve ECB’s bond-buying scheme temporarily

Today marks an important day for the stock market as the European Central Bank’s (ECB) monetary policy meeting that is scheduled to take place during the course of the day could decide the fate of bond-buying scheme.

German Chancellor Angela Merkel has indicated that she is likely to accept temporary ECB bond buying. Keeping the hope alive, the FTSE 100 is likely to open on an optimistic note, with 15 to 18 points in the green, as investors are watchful of the Bank of England’s monetary policy meeting scheduled later today.

Sky TV Italy reports that Glencore International is gearing up to make a formal announcement of its offer for Alcoa’s aluminum plant in Sardinia. Financial results will be declared by WM Morrison Supermarkets, Abcam, Go-Ahead Group, Valiant Petroleum and Randall & Quilter Investment Holdings.

Barclays’ plea against severe treatment in a tax row has been trashed by the Finance Minister George Osborne, Reuters reported. The CEO of International Consolidated Airlines Group (IAG), Willie Wash, has declared that the company has ended its joint venture with Qantas Airways Limited, which was scheduled to be effective from March 31, 2013.

For most part of Wednesday, the London index had a negative session but managed to bounce back from the 5,640-mark. With the British stocks’ willingness to bounce back, short-term trading is expected with investors likely to go long with the FTSE futures or even opt for higher beta British stocks. Expansions and construction moves could see investments in financials as well.

The point to watch out for today is whether the market can sustain at the 5,600-level. Because, if it falls below this level, then it would result in panic selling.

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