While the concerns about the Omicron variant in the global markets decreased, a buying-heavy trend was followed before the Christmas holiday, while the Financial Stability Committee meeting and the Monetary Policy Committee (PPK) meeting summary of the Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (PPK) in Turkey and the data to be announced in the USA abroad will be followed today. .
Developments regarding the Omicron variant in the new type of coronavirus (Kovid-19) epidemic remain at the center of the agenda. While Belgium is toughening current practices to keep Kovid-19 cases low during the Christmas holiday period, it has been reported that the Omicron variant has spread to 50 states in the USA. Despite these developments, a study published by the National Institute of Infectious Diseases of South Africa revealed that those who contracted the Omicron variant in the epidemic were 80 percent less likely to be hospitalized compared to other variants.
As investors ignored the risks related to the epidemic before the Christmas holiday, purchases in global stock markets strengthened, while today the positive outlook is preserved in the US and European index futures contracts and Asian stock markets.
While the positive outlook in the equity markets was supported by the macroeconomic data announced in the USA yesterday, the growth data for the third quarter of the country was revised from 2.1 percent to 2.3 percent. After the third quarter data, the US economy contracted by 3.4 percent last year, while the growth expectation for 2021 rose to 5.6 percent, marking the highest level since 1984. On the other hand, the Conference Board Consumer Confidence Index in the USA increased by 6.3 points in December compared to the previous month and reached the highest level of the last 5 months with 137.9.
With these developments, the Dow Jones index gained 0.74 percent, the S&P 500 index gained 1.02 percent and the Nasdaq index gained 1.18 percent in the New York stock market yesterday. The dollar index is following a horizontal course today, after falling to the limit of 96 by carrying its decline to the third day yesterday. The US 10-year bond yield, on the other hand, ended its two-day rise and stabilized at 1.46 percent after testing 1.49 percent yesterday.
On the European side, while the UK's third quarter growth was revised downwards to 1.1 percent yesterday, it is stated that it may take the end of 2022 for the country to return to pre-epidemic levels. Post-data, the Confederation of British Industry said businesses are reporting the weakest growth since the country was placed under lockdown earlier this year, and they expect further slowdowns in early 2022. Despite these developments, a buying-weighted course was observed in the European stock markets yesterday, while the FTSE 100 index in the UK increased by 0.61 percent, the DAX 30 index in Germany increased by 0.95 percent and the CAC 40 index in France increased by 1.24 percent. Euro/dollar parity, on the other hand, is horizontal today after closing at 1.1338 with an increase of 0.5 percent yesterday.
The Central Bank of Czechia increased the policy rate to 3.75 percent by increasing the interest rate by 100 basis points more than the expectations. Thus, the bank has increased its policy rate by 350 basis points in total since June. On the other hand, after the Hungarian Central Bank announced that mortgage rates would be frozen for 6 months, the country's stock market lost more than 3 percent, led by the banking index.
On the Asian side, shares of Chinese real estate company Evergrande, which is listed on the Hong Kong stock exchange, rose more than 2 percent after the company announced that it is using its resources and will actively deal with its creditors. In Japan, Haruhiko Kuroda, the head of the country's central bank, said that they will patiently maintain strong monetary support as inflation remains below the targets. With these developments, the Nikkei 225 index in Japan rose by 0.5 percent, the Shanghai composite index in China rose by 0.1 percent and the Hang Seng index in Hong Kong rose by 0.2 percent, close to the closing.
In Borsa Istanbul, where volatility was high yesterday and the circuit breaker was operating, the BIST 100 index finished the day at 1,804.15 points with a 4.64 percent depreciation. On the other hand, Dollar/TL is trading at 12.0460 levels at the opening of the interbank market today, after closing at 12.2 with a decrease of 1 percent yesterday.
Analysts said that as the concerns about the Omicron variant in the Kovid-19 epidemic eased, the risk appetite was high and the transaction volume was low in the global stock markets before the Christmas holidays, while the volatility continued during the repositioning of investors and the stabilization of the exchange rate in the domestic market. Tomorrow, there will be no transactions in the markets of many countries, especially the USA, Germany and England, due to the Christmas holiday.
Stating that the Financial Stability Committee will hold its second meeting today under the chairmanship of Treasury and Finance Minister Nureddin Nebati, the analysts noted that the statements from the economy management and exchange rate developments will continue to be closely monitored.
Analysts also stated that today the Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (PPK) meeting summary will be monitored in the country, and personal income and expenditures, weekly unemployment applications and consumer confidence index data in the USA abroad will be monitored, technically at 1,790 in the BIST 100 index. He said that the score is in the support position.
The data to be followed in the markets today are as follows:
14.00 Turkey, PPK meeting summary
16.30 US, November personal income and expenses
16.30 US, weekly jobless claims
16.30 US durable goods orders for November
18.00 US, December University of Michigan Consumer Confidence Index
18.00 US, November home sales
Comments
No comment yet.