With the expectation that the inflation data to be announced on Friday in the USA will signal a return from the peak and the reopening economy in China, the fact that the US 10-year bond yield exceeds 3 percent in the global markets, which was positive yesterday, causes uneasiness.
While the decline in semiconductor chips, fertilizer and freight prices, which play an important role in increasing inflation worldwide, positively affects inflation expectations on a global scale, data and news on the inflation outlook remain in the focus of the markets before the monetary policy meeting of the US Federal Reserve (Fed) next week.
While it is considered certain that the Fed will increase interest rates by 50 basis points in the next two meetings in the pricing of money markets, the interest rate hike expectations at the September meeting fell below 50 basis points.
On the other hand, the high inflation rate of the last 41 years kept the selling pressure strong in the bond markets, while the 10-year US bond yield rose to 3.06 percent, the highest level since May 11, ahead of the $96 billion borrowing to be made this week.
After the reopening of the Chinese economy and the sanctions imposed by the European Union countries on Russian oil, oil prices continue to find buyers at the level of 120 dollars.
With these developments, the S&P 500 index gained 0.31%, the Nasdaq index by 0.40 percent and the Dow Jones index by 0.05 percent in the New York stock market yesterday. Index futures contracts in the USA started the new day with sellers.
While eyes in Europe turn to the monetary policy meeting of the European Central Bank (ECB), which will be held on Thursday, it is considered certain that the bank will announce that it will stop asset purchases at the end of this month.
While uncertainties continue in the pricing of money markets about how the ECB will increase interest rates, the bank is expected to increase interest rates by 130 basis points until the end of the year.
On the other hand, yesterday, British Prime Minister Boris Johnson won the confidence vote within the Conservative Party, of which he is the leader, by 211 votes to 148. Johnson was under the pressure of criticism and resignation due to the holding of parties that violated the quarantine rules during the new type of coronavirus (Kovid-19) epidemic in the Prime Minister's Office Number 10.
Yesterday, DAX 30 index gained 1.34 percent in Germany, FTSE 100 index gained 1 percent in England, CAC 40 index gained 0.98 percent in France and FTSE MIB 30 index gained 1.65 percent in Italy. Index futures contracts in Europe started the new day with a decrease.
In Asia, the news that the economy started to reopen after China took the Kovid-19 epidemic under control and that the regulations on technology companies came to an end are influential in pricing.
The company's share price in the US rose nearly 20 percent on news that Chinese regulators are nearing the end of their work on the tech firm Didi and may soon be approved to take on new customers.
With these developments, Chinese companies traded in the USA recorded a significant increase yesterday, while the Nasdaq Golden Dragon China index, which includes Chinese companies traded in the USA, gained 5.4 percent yesterday.
On the other hand, central banks continue to take firm steps in the fight against inflation in the region. The Reserve Bank of Australia (RBA) increased the policy rate by 50 basis points to 0.85 percent, above expectations.
In the statement made by the bank, it was stated that they will continue to take positions according to macroeconomic data and will continue to do everything that needs to be done in the fight against inflation.
According to the macroeconomic data announced in the region, the leading index in Japan increased by 2.1 percent in April.
With these developments, Nikkei 225 index increased by 0.1 percent in Japan close to the closing, Shanghai composite index increased by 0.2 percent in China, Hang Seng index was 1 percent in Hong Kong and Kospi index was 1.7 percent in South Korea, which returned from vacation. lost value.
Domestically, the BIST 100 index, which saw its highest level of all time with 2,654.41 points yesterday, closed the day with a record closing level of 2,648.12 points.
Dollar/TRY is trading at 16.6340 level at the opening of the interbank market today, after gaining 1 percent value yesterday and closing at 16.5812.
Analysts stated that the data agenda is calm in the country today, while abroad, factory orders in Germany, the service sector and the combined Purchasing Managers Index (PMI) in the UK and foreign trade deficit data in the USA will be followed, technically in the BIST 100 index. He said that 2.650 and 2.690 levels stand out as resistance and 2.620 points as support.
The data to be followed in the markets today are as follows:
09.00 Germany, factory orders for April
11.30 UK, May services sector and composite PMI
15.30 US, April foreign trade deficit
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