Before the speech of Fed Chairman Jerome Powell at the Jackson Hole Economic Policy Symposium today, a fluctuating course is observed in the markets.
Analysts stated that the mixed signals from the recently announced macroeconomic data and the increasing number of cases in the new type of coronavirus (Kovid-19) epidemic made pricing difficult in the markets, and said that uncertainties regarding monetary policies continued.
Noting that the minutes of the European Central Bank (ECB) meeting announced yesterday revealed that members were discussing verbal guidance on interest rates, analysts stated that the guidance expected by Powell to reduce asset purchases today will be decisive on the direction of the markets. Before Powell's speech, it was noteworthy that some Fed members emphasized that asset purchases should start to be reduced this year.
In the meeting minutes of the ECB, it was revealed that the members wanted their asset purchase programs to continue in the current conjuncture and that they had a very intense discussion about the implementation of the bank's new strategy, including verbal guidance on interest rates. The minutes showed that members were keeping a close eye on price increases and inflation, and were concerned that the new rhetoric would force the ECB into lengthy policy commitments that could undermine its credibility.
On the other hand, the US economy grew by 6.6 percent in the second quarter, according to data released yesterday. The expectation for the upwardly revised data was that the economy would grow by 6.7 percent in the second quarter of the year. The number of people who applied for unemployment benefits for the first time in the country increased to 353,000 in the week ending August 21, increasing for the first time in the last 5 weeks.
In the New York stock market, which was selling with these developments, the Dow Jones index lost 0.54 percent, the S&P 500 index fell 0.58 percent and the Nasdaq index lost 0.64 percent.
European stock markets also saw decreases after the ECB minutes released yesterday. The leading data announced in the selling course in the equity markets were effective, indicating that the recovery in the economy lost momentum.
While the growth rate of corporate loans in the Euro Zone slowed down in July, the export expectations of industrial companies in Germany decreased significantly in August. In addition, the Consumer Confidence Index in Germany decreased by 0.8 points to minus 1.2 points for September due to the increase in the number of Kovid-19 cases and rising inflation.
Following the data, the FTSE 100 index decreased by 0.35 percent in the UK, the DAX 30 index decreased by 0.42 percent in Germany, the CAC 40 index decreased by 0.16 percent in France and the FTSE MIB 30 index decreased by 0.76 percent in Italy. Euro/dollar parity, on the other hand, decreased by 0.2 percent to 1.1752.
Today, a mixed trend is observed in Asian stock markets. According to the data released in Japan, the Consumer Price Index decreased by 0.4 percent year on year in August, while the core CPI changed on an annual basis.
Near the closing, the Nikkei 225 index fell 0.5 percent in Japan, the Shanghai composite index in China gained 0.5 percent and the Kospi index in South Korea gained 0.1 percent.
BIST 100 index in Borsa Istanbul, which was selling domestically yesterday, lost 0.33 percent and closed the day at 1,448.52 points. The dollar/TL, which closed at 8.3926 with an increase of 0.16% yesterday, is traded at 8.3910 at the opening of the interbank market today.
Analysts stated that, in addition to the speech of Fed Chairman Jerome Powell, the economic confidence index in the country, personal incomes and expenditures in the USA and the consumer confidence index of the University of Michigan will be followed today. He said the score stood out as resistance.
The data to be followed in the markets today are as follows:
10.00 Turkey, August economic confidence index
15.30 US, July personal income and expenses
15.30 US, July wholesale stocks
17.00 USA, August University of Michigan consumer confidence index
17.00 USA, Speech by Fed Chairman Jerome Powell
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