While the global stock markets followed a mixed course with the concerns that the US Federal Reserve (Fed) would raise interest rates before expectations and reduce the asset purchase rate again in the range, today US President Joe Biden's speech on the economy and the Purchasing Managers Index (PMI) data on a global basis. will be followed.
After the announcement that US President Joe Biden will nominate Jerome Powell as Fed Chairman and Lael Brainard as Vice Chairman last night, Biden's evaluations on the economy will be followed today.
Emphasizing that Powell's steady and determined leadership helped stabilize markets and push the US economy into a robust recovery, Biden said he believes he is "the right person" to address the threat of inflation and achieve the target of maximum employment.
Powell stated that they will use monetary policy tools to support both the economy and a strong labor market and to prevent high inflation from settling.
Analysts stated that with Powell's stay in office, the change in the rate of asset purchase in the markets was priced in the meeting in December, and noted that the first interest rate hike is expected to be made at the meeting in June 2022 at the latest.
While the price of gold fell 2.2 percent to $1,805 an ounce after Powell was again nominated as Fed Chairman, the US 10-year bond yield rose by about 8 basis points to 1.63 percent.
While the dollar index continued to rise and reached the highest level of the last 16 months at 96.6, the barrel price of Brent oil remained flat at 78.6 after the news that Biden will announce a plan to use oil reserves with Japan, India and South Korea. is at the dollar level.
Yesterday, the S&P 500 index fell 0.32 percent and the Nasdaq index depreciated by 1.26% in the New York stock market, while the Dow Jones index increased by 0.05 percent. Today, it is seen that the mixed trend continues in index futures contracts.
In Europe, the new type of coronavirus epidemic (Kovid-19) is at the center of the agenda. After the increasing number of cases, Austria implemented the restrictions as of yesterday, while the concern that this situation could spread throughout the region and negatively affect the economic recovery is one of the factors that reduced the risk appetite.
Yesterday, the DAX 30 index in Germany decreased by 0.27 percent and the CAC 40 index in France by 0.10 percent, while the FTSE 100 index in the UK increased by 0.44 percent and the FTSE MIB 30 index in Italy increased by 0.78 percent.
The euro/dollar parity, on the other hand, continues to decline and is currently trading at 1.1230, the lowest level since July 2020.
While the tension between China and the USA over Taiwan continues in Asia, the expectations that China will support the economy reduce the selling pressure in the markets.
Close to the close, the Shanghai composite index in China rose 0.10 percent, while the Kospi index in South Korea fell 0.60 percent and the Hang Seng index in Hong Kong fell 1.30 percent. Today, there are no transactions in Japanese markets due to the holiday.
Analysts stated that the manufacturing industry and service sector PMI data to be announced in the USA and Europe today and the Richmond Fed manufacturing industry index in the USA will be followed, and noted that US President Biden's evaluations on the economy are in the focus of investors.
Stating that the developments regarding the Kovid-19 outbreak and the verbal guidance of the European Central Bank (ECB) officials may also increase the volatility, analysts stated that 1.760 and 1.780 levels in the BIST 100 index are technically in the position of resistance and 1.720 points in the support position.
The data to be followed in the markets today are as follows:
11.30 Germany, November manufacturing, services and composite PMI
12.00 Eurozone, November manufacturing, services and composite PMI
12.30 UK, November manufacturing, services and composite PMI
14.30 Turkey, November financial services confidence index
17.45 US, November manufacturing, services and composite PMI
18.00 US, November Richmond Fed manufacturing index
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