While pricing of tightening steps in monetary policy after inflation pressure in global markets created a risk factor for the markets, today's statements of the Bank of England (BoE) Chairman Andrew Bailey, who increased the interest rate hike expectations with his guidance yesterday, placed the focus of investors.
While a sales-weighted course was dominant in Asia and Europe yesterday, the New York stock market broke the selling pressure, led by the technology stocks-weighted Nasdaq index, close to the close.
Yesterday, the US 10-year bond yield decreased from 1.63% to 1.58% and the flattening in the yield curve slowed down among the factors that increased the risk appetite.
However, while the ongoing balance sheet period continues to be the main factor supporting the stock markets, the announced balance sheets try to understand how the new type of coronavirus (Kovid-19) epidemic and the increasing salary and price pressures affect the profit margins of the companies.
US Treasury Secretary Janet Yellen stated that some extraordinary measures put in place to avoid exceeding the country's debt limit will be extended until 3 December.
With these developments, the S&P 500 index gained 0.34 percent and the Nasdaq index gained 0.84 percent in the New York stock market yesterday, while the Dow Jones index depreciated by 0.10 percent.
After rising to $85.5 per barrel and the dollar index to $94.2 yesterday, the price of Brent oil decreased to $83.9 and $93.7, respectively, today. While the US 10-year bond yield was at the level of 1.59%, index futures contracts started the new day with a flat course.
On the European side, after the statements of BoE Chairman Andrew Bailey, tightening monetary policy became the focus of the agenda. Analysts noted that after Bailey's statements, BoE is considered certain to increase the policy rate by 15 basis points at the next meeting, and stated that the inflation pressure, which continues its strong course, is behind the said guidance.
Stating that clues about the future of monetary policy will be sought in Bailey's speech today, analysts noted that the 2-year bond yields increased by 12 basis points and the 5-year bond yields increased by 8 basis points in the UK yesterday.
On the other hand, after Gazprom's limited natural gas flow to Europe after the natural gas auctions in Russia, natural gas futures increased by more than 10 percent, but prices later returned to their previous levels.
Yesterday, the FTSE 100 index in the UK lost 0.42 percent, the DAX 30 index in Germany by 0.72 percent, the CAC 40 index in France by 0.81 percent and the FTSE MIB 30 index in Italy by 0.68 percent.
While the euro/dollar parity is currently around 1.1650 with an increase of 0.3 percent compared to the previous close, it is seen that the European index futures contracts started the new day with a limited increase.
While a buying-heavy trend led by technology companies stood out in Asian stock markets, China's announcement that they would continue to provide financial support to SMEs increased the risk appetite.
On the other hand, uncertainties regarding the bond payments of Chinese real estate giant Evergrande remain on the agenda, while today's local currency coupon payment is in the focus of investors.
Concerns over energy supply in China also continue to affect asset prices, while the January 2022 coal contract is currently trading at 1,918 yuan, 9.2 percent above the previous close, after hitting a record high of 1,982 yuan today.
In Japan, the campaign period of the ordinary parliamentary elections to be held at the end of the month has begun. The ordinary election race for the House of Representatives (Shugiin), which will be held on October 31 in the country, has officially started. During the 12-day campaign period, hundreds of candidates will carry out political propaganda in order to enter the parliament.
With these developments, Nikkei 225 index gained 0.58 percent in Japan, Shanghai composite index gained 0.79 percent in China, Kospi index gained 0.63 percent in South Korea and Hang Seng index gained 1.21 percent in Hong Kong. .
Domestically, the BIST 100 index in Borsa Istanbul diverged positively from the global stock markets and closed the day at 1,417.70 points with an increase of 0.58 percent. Dollar/TL, on the other hand, saw its historical peak with 9.3765 today after closing at 9,3350 in the international market yesterday and is trading at 9,3420 levels at the opening of the interbank market.
Analysts stated that the data agenda is calm in the country today, and the statements of the Governor of the Bank of England and the US Federal Reserve will be followed, along with the data on construction permits and housing starts in the USA abroad.
Stating that the company's financial results, which continue to be announced on a global basis, may trigger share-based price movements, analysts stated that technically, 1.420 and 1.444 points in the BIST 100 index are in the position of resistance and 1.396 in support.
The data to be followed in the markets today are as follows:
15.30 The USA, September building permits
15.30 The USA, September housing starts
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