While the importance of the steps to be taken in the face of inflation, which continues its upward trend in the USA and Europe, is increasing, the statements of the President of the US Federal Reserve (Fed) Jerome Powell and the President of the European Central Bank (ECB) Christine Lagarde will search for clues about the future of monetary policy.
In the ongoing verbal guidance of the Fed officials, the majority gave the green light to a 50 basis point rate hike at the meeting in May, while the message was given that 75 basis points interest rate hikes might be more than necessary.
Yesterday, Chicago Fed President Charles Evans stated that the Fed should move reasonably on raising interest rates. Evans reiterated his view that the Fed could raise the target range for the federal funds rate to 2.25-2.50 percent by the end of the year and then assess the state of the economy but would need to raise rates further if inflation remains high.
San Francisco Fed President Mary Daly said inflation is unlikely to drop to 2 percent this year, but she thinks it will start to decline. Daly said he believes the half-point rate hike next month is "complete" and "solid".
The Fed's Beige Book Report, which includes assessments of the current situation in the American economy, pointed out that inflationary pressures remained strong, and the outlook for growth was overshadowed by the uncertainty created by geopolitical developments and rising prices.
On the other hand, companies in the USA continue to announce their balance sheets. In the announced balance sheets, it was observed that the profitability of the company generally exceeded expectations, while the loss of more than 35 percent in Netflix shares, which announced that the number of subscribers fell for the first time in more than 10 years, was remarkable.
The profit of the US electric car manufacturer Tesla, on the other hand, increased by 255 percent in the first quarter of this year compared to the same period of the previous year, reaching a record level of $ 3.7 billion.
The 10-year bond interest rate of the USA, which fell after seeing the peak of about 4 years with 2.98 percent yesterday, was balanced at 2.87 percent.
With these developments, a mixed course was followed in the New York stock market, while the S&P 500 index depreciated by 0.06 percent, the Nasdaq index depreciated by 1.22 percent, and the Dow Jones index rose by 0.71 percent. Index futures contracts in the USA started the day with rising.
While European stock markets finished the day with an increase yesterday, ECB President Lagarde's guidance came to the focus of the agenda today.
While the hawkish statements on the ECB side continued to increase after the increasing inflation, ECB member Pierre Wunsch said in a speech he gave to a press organization yesterday that the bank could bring the policy rate to the positive zone before the end of the year.
Yesterday, DAX 30 index gained 1.47 percent in Germany, FTSE 100 index gained 0.37 percent in England, FTSE MIB 30 index gained 1.03 percent in Italy and CAC 40 in France gained 1.38 percent. Index futures contracts in Europe started today with an upward trend.
Today, sales pressure continues in China and Hong Kong, led by technology companies, while a mixed trend is observed across Asia.
The new type of coronavirus (Kovid-19) epidemic in China and Taiwan continues to threaten the supply chain.
The People's Bank of China (PBoC) pushed the daily midpoint up in the dollar/yuan parity for the third day, bringing the yuan to its lowest level against the dollar since October.
Analysts said that although the PBoC did not use the policy rate, it tried to relax the markets, but the risks brought by the Kovid-19 epidemic and the increasing expectations of investors for supportive policies were not met.
With these developments, Shanghai composite index in China decreased by 1.7 percent and Hang Seng index in Hong Kong decreased by 2 percent, while Nikkei 225 index in Japan increased by 1.1 percent and Kospi index in South Korea increased by 0.5 percent. .
Domestically, after the BIST 100 index hit its all-time high level of 2,536.39 points during the day yesterday, it increased its closing record to 2,525.93 points with an increase of 0.27 percent compared to the previous close.
After closing at 14.6747 with an increase of 0.2 percent yesterday, the Dollar / TL is trading at 14.6710 at the opening of the interbank market today.
Analysts noted that, in addition to the statements of Powell and Lagarde, the consumer confidence index, weekly money and bank statistics in the country, and the Consumer Price Index (CPI) in the Eurozone and weekly unemployment benefits applications in the USA will be followed abroad.
In addition, within the scope of the Spring Meetings, a roundtable meeting on the support provided to Ukraine will be held with the participation of World Bank President David Malpass, International Monetary Fund (IMF) Director Kristalina Georgieva and Ukrainian Prime Minister Denys Shmyhal. reported that the press conference was also in the focus of investors.
Analysts stated that the 2.550 level in the BIST 100 index technically is in the resistance position, and said that 2.490 and 2.440 points will stand out as support in possible decreases.
The data to be followed in the markets today are as follows:
10.00 Turkey, April consumer confidence index
12.00 Euro Zone, CPI for March
14.00 Turkey, CBRT Monetary Policy Committee meeting summary
15.30 US, April Philadelphia Fed manufacturing index
15.30 US, weekly jobless claims
17.00 Eurozone, April consumer confidence index
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