US Federal Reserve (Fed) Chairman Jerome Powell will speak today at a meeting with teachers and students. President Powell will answer questions from attendees from around the country who will attend the meeting virtually. Powell will speak for the first time after the employment and inflation data announced last week.
In the new day, when the macroeconomic data flow is also intense, the second quarter growth in the Euro Zone and the retail sales and industrial production data for July in the USA and the economic progress will be signals.
Before these developments, it was seen that the worse than expected macroeconomic data in China and the USA yesterday, the number of new types of coronavirus (Kovid-19) cases that continue to increase and the geopolitical risks originating from Afghanistan created selling pressure in the global stock markets.
With the New York Fed Manufacturing Index falling by 24.7 points to 18.3 in August, the New York stock market, which started the day with a selling weight, had a mixed course at the close. While the Dow Jones index and the S&P 500 index continued to close at a record level with an increase of 0.31 percent and the S&P 500 index by 0.26 percent, the technology stocks-weighted Nasdaq index lost value by 0.20 percent and continued its negative divergence. The 10-year bond yields of the USA, which saw the lowest level of the last 10 days by falling to 1.24% yesterday due to the increasing demand of investors, were balanced at 1.25% today. The dollar index, on the other hand, is moving at 92.7 levels today, after closing at 92.6 with an increase of 0.1 percent yesterday.
With the increasing global risk perception on the European side, it was seen that the stock markets took a break from the 10-day rising streak. On the other hand, the company's shares fell 3.14 percent yesterday after the government in Germany announced that it plans to sell up to 5 percent of its 20 percent stake in the German airline company Lufthansa in the next few weeks. With these developments, the DAX index in Germany decreased by 0.32 percent, the CAC 40 index in France by 0.83 percent and the FTSE 100 index in the UK decreased by 0.90 percent. Although Euro/dollar parity tested above 1.18 yesterday, it regressed to 1.1776 levels at the close, while it is moving sideways today.
On the Asian side, where macroeconomic data gives mixed signals, the increase in the number of Kovid-19 cases continues to put pressure on the stock markets. In Japan, the government decided to add 7 more provinces to the scope of the state of emergency (OHAL) after the Kovid-19 cases, which maintain the increasing trend. Thus, the number of states under the state of emergency increased to 13, and the duration of the state of emergency, which was planned to end at the end of the month in Tokyo and surrounding states, the city of Osaka in the south and the island of Okinawa, was extended to September 12.
On the other hand, the minutes of the August meeting of the Reserve Bank of Australia; revealed the bank's readiness to act if the pandemic worsened and restrictions threatened a deeper economic downturn. With these developments, Shanghai composite index depreciated by 0.5 percent in China close to the closing, while Nikkei 225 index in Japan is watching with a limited increase of 0.05 percent today, after a sharp decrease of 1.6 percent yesterday.
On the commodity side, the price of Brent oil is trading at $ 69.2 a barrel, after seeing the lowest level of the last week at $ 67.9 yesterday, due to concerns about global demand. The ounce price of gold, on the other hand, carried its rise to the 5th day yesterday, with the increasing risk perception of investors turning to assets seen as safe havens, and finished at $1,787.2 with an increase of 0.4 percent. With this level, the ounce price of gold, which made the highest close of the last 10 days, is moving horizontally at the level of $ 1.786 today.
BIST 100 index in Borsa Istanbul, which was positively differentiated by banking and holding shares in the domestic market yesterday, closed the day at 1,455.25 points with 0.53 percent gain. Dollar/TL parity, on the other hand, decreased for the 3rd consecutive trading day and fell to the lowest level of 12 days with 8.4399 yesterday, while it remains flat at 8.46 levels today.
Analysts pointed out that TL assets were positively differentiated despite the decreasing risk appetite in global stock markets, and said that Fed Chairman Powell's statements were at the center of the agenda today.
Stating that today, the housing price index in the country, unemployment in the UK, growth in the Eurozone and industrial production and retail sales in the USA will be followed, analysts said that technically, 1,470 points are in the position of resistance and 1,440 points are in the position of support in the BIST 100 index.
The data to be followed in the markets today are as follows:
09.00 England, unemployment rate in June
10.00 Turkey, January-June building permit statistics
12.00 Eurozone, second quarter growth
14.30 Turkey, June House Price Index
15.30 US, July retail sales
15.30 USA, industrial production and capacity utilization rate in July
20.30 Speech by Fed Chairman Jerome Powell
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