JPM-European Equity Derivatives Strategy Outshining Gold：Long TOP 40...-20251112

•JPM strategists view South African equities as positioned for further gains,supported by rising gold prices and a weaker dollar - two conviction calls going into the new year. Strong earnings momentum, attractive valuations, and a positive fiscal feedback loop are key supportive factors. We recommend buying Top40 June 2026 call spreads to capture further momentum and take advantage of implied volatility, which is trading in-line with the Euro STOXX 50.

•We see the recent pullback in gold prices as a good opportunity to position for further upside. Central banks and consumers are expected to remain reliable physical dip buyers, with JP Morgan forecasting gold to breach $5,000 per ounce by 4Q26. We combine this outlook with our constructive view on European equities through highly leveraged, March 2026 Gold up /Euro STOXX 50 up dual digitals.