While the minutes of the last meeting of the US Federal Reserve (Fed) increased the possibility of a decrease in asset purchases this year, this situation brought along the strengthening of the dollar against other currencies. With the pricing of investors whose risk appetite decreased, sales in the stock markets deepened, and commodity prices, which fell sharply with the strengthening of the dollar, increased the volatility in the related sector shares.
On the last trading day of the week, when the data flow was relatively calm with these developments, a negative trend was observed in the index futures contracts in the USA and Europe, as well as in Asian stock markets.
Analysts said that investors are focused on the Jackson Hole meeting to be held next week, and that Fed Chairman Jerome Powell's speeches will seek more clarity on the path to be followed in reducing asset purchases.
On the macroeconomic data side, weekly unemployment claims announced in the USA fell to 348 thousand, falling above the expectations. While this figure is at a 17-month low, the number of applications for unemployment benefits is expected to fall further in the coming weeks as federal unemployment benefits expire in September and schools reopen. The Philadelphia Fed Manufacturing Index, on the other hand, continued its decline, falling to 19.4 in August, contrary to market expectations. The index, which has been declining for 4 consecutive months, fell to the lowest level recorded since December 2020.
After the announced data, the New York stock market followed a mixed course, while the Dow Jones index decreased by 0.19 percent, the S&P 500 index rose by 0.13 percent and the Nasdaq index rose by 0.11 percent. The dollar index, whose rise gained momentum, tested the highest level in about 10 months with 93.6. The US 10-year bond yields, on the other hand, were stabilized at 1.24% today, after moving in the 1.22-1.27 percent band yesterday.
While sharp decreases were seen in the stock markets on the European side yesterday, it was seen that the sales in the mining sector shares, with the effect of the decline in commodity prices, led this decline. The FTSE 100 index lost 1.54 percent in the UK, the DAX 30 index fell by 1.25 percent in Germany, the CAC 40 index lost 2.43 percent in France, and the FTSE MIB 30 index lost 1.63% in Italy. The euro/dollar parity, on the other hand, is moving sideways at 1.1690 levels, after seeing the lowest level since November 4, 2020 with 1.1666 yesterday.
Meanwhile, yesterday, the European Union (EU) decided to recognize the Kovid-19 vaccine certificates of Turkey, North Macedonia and Ukraine. European Central Bank (ECB) President Christine Lagarde will not attend next week's Jackson Hole meeting.
On the Asian side, the increase in the number of Kovid-19 cases and the measures taken in parallel with the market regulations of the Chinese regulators remained at the focus of the agenda, while the sharply falling commodity prices were effective in today's sales in the stock markets. On the other hand, the People's Bank of China (PBoC) kept the 1-year loan interest rate, which is taken as the policy rate, at 3.85 percent. Leaving the 5-year loan interest rate at the level of 4.65%, the bank did not change the interest rates for the 16th consecutive month. With these developments, Shanghai composite index in China lost 2 percent and Nikkei 225 index in Japan lost 1 percent value close to the closing.
Looking at the commodity side, it is seen that the ounce price of gold, which fell by 0.4 percent yesterday, compensated for most of its losses today and increased by 0.3 percent to $1,786. The barrel price of Brent oil, on the other hand, is moving horizontally at $ 66 today, after seeing the lowest level in 3 months with $ 65.2 yesterday.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course yesterday with the weakening of the global risk appetite and the strengthening of the dollar, closed the day at 1,439.86 points with a depreciation of 0.67 percent. Dollar/TL, on the other hand, is trading at 8.5360 at the opening of the interbank market today, after increasing 0.8 percent yesterday and closing the day at 8.52 levels.
Analysts stated that the data agenda is calm today and stated that, technically, 1.470 points in the BIST 100 index stands out as resistance, and in case of remaining below 1.440 points, the 1.410 level stands out as support.
The data to be announced in the markets today are as follows:
10.00 Turkey, July Overseas PPI
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