While the expectations that central banks will tighten their monetary policies more rapidly continue to negatively affect the investor risk perception, the increasing number of cases in the new type of coronavirus (Kovid-19) epidemic, especially in Asian countries, remains on the agenda. Adding to these developments, the increasing tension between Russia, the USA and NATO due to Ukraine, accelerated the sales in the stock markets.
While the Foreign Relations and Security and Defense Committees of the European Parliament held a joint meeting yesterday regarding the ongoing crisis in eastern Ukraine and the border with Russia, White House Spokesperson Jen Psaki said that all options are on the table in case Russia invades Ukraine. On the Russian side, it was reported that President Vladimir Putin and Iranian President Ibrahim Reisi will discuss the Iran nuclear deal in Moscow today. On the other hand, it was announced that Russia, Iran and China will hold joint naval exercises around the Persian Gulf.
With the effect of the increase in geopolitical risks, the price of Brent oil per barrel reached its highest level since October 2014 with $ 88.4. Despite the increasing oil prices, the RTS index in Russia reached its lowest level since December 2020 with 1,355.25 points yesterday, and closed the day with a 7.3 percent depreciation at 1.367.5 points. While the US 10-year bond yield continued to reach the highest level in 2 years, it tested 1.90 percent with concerns about inflation and uncertainties regarding economic activity.
In the last quarter of 2021, the net profit of the US bank Goldman Sachs decreased by 13 percent compared to the same period of the previous year and decreased to $ 3.94 billion. While the bank's shares lost nearly 7 percent after its worse-than-expected balance sheet, a sales-oriented course was followed in the New York stock market with all these developments. The Dow Jones index fell 1.51%, the S&P 500 index fell 1.84 percent and the Nasdaq index fell 2.60 percent to complete the day. The dollar index, on the other hand, remained flat after rising by 0.5 percent to 95.7 yesterday. On the European side, the ZEW Economic Expectation Index announced in Germany yesterday was well above the expectations with 51.7, while the evaluations regarding the data showed that the economic outlook started from the beginning of the new year. It showed that you have visibly improved. Increasing oil prices and the concerns about the reflection of the tension with Russia on energy supply caused a decrease in the stock markets yesterday. The FTSE 100 index lost 0.63 percent in the UK, the DAX 30 index lost 1.01 percent in Germany and the CAC 40 index lost 0.94 percent in France. Euro/dollar parity is at 1.1330 today after closing at 1.1318 with a decrease of 0.8 percent yesterday.
In Asia, the increase in the number of Kovid-19 cases remains the focus of the agenda, while it is seen that the tightening of the measures continues in China after Australia and Japan. On the equity markets side, the negative mood in the US stock markets continued in Asia this morning, while the Shanghai composite index was 0.6 percent in China, the Nikkei 225 index was 2.9 percent in Japan, and the Kospi index in South Korea was 0 percent. 9 declined. In the domestic market, sales deepened in Borsa Istanbul in the afternoon due to the increased geopolitical risks yesterday and the session was completed at 17.32 with the operation of the index-linked circuit breaker system. Thus, the BIST 100 index closed the day at 1,979.83 points with a 5.08 percent depreciation. Dollar/TL, on the other hand, is trading at 13,5520 at the opening of the interbank market, after closing at 13,5288 with an increase of 0.7 percent yesterday. He said that this situation triggered sales in equity markets around the world.
Stating that the statements of the Bank of England Governor Andrew Bailey will be at the center of the markets today, analysts stated that the Consumer Price Index (CPI) will come to the fore in the UK and Germany on the data agenda. Analysts point out that the course of the bond market is also critical for the direction of the markets. Technically, he reported that 2.020 and 2.110 levels are in the resistance position and 1.950 points are in the support position in the BIST 100 index. and housing starts.
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