While the inflation concerns in the USA continue to be influential in asset prices, the volatility in the markets continues to increase.
US stock markets, which gained more than 3 percent value on Wednesday with the Fed's policy decision and Fed Chairman Jerome Powell's statements, gave back all of their gains yesterday, with the fear that the Fed might have difficulty in preventing inflation.
Analysts noted that the fear that the Fed might be late in the interest rate hike was effective on yesterday's pricing, and said that the situation in question deepened the selling pressure.
Analysts, who stated that almost all sector indices in the S&P 500 index decreased in yesterday's transactions, said that the spread of the selling trend over such a wide range made the investors nervous for the next period.
With the aforementioned concerns and the selling pressure, which was also effective in the bond markets, the US 10-year bond yield increased to 3.10 percent yesterday, the highest level since November 2018, while the depreciation in Bitcoin was 8 percent.
Analysts, drawing attention to the importance of the data in the employment report to be announced in the USA today, said that the volatility may continue on the last trading day of the week.
Reminding that there is already a very strong labor market in the USA, analysts stated in the report that the change in wages will be closely followed along with the latest situation in the labor market.
With these developments, the S&P 500 index fell 3.56 percent, the Nasdaq index 4.99 percent and the Dow Jones index 3.12 percent in the New York stock market yesterday. Index futures contracts in the USA started the new day with a selling trend.
In Europe, the Bank of England (BoE) increased the policy rate by 25 basis points to 1 percent yesterday, in line with the expectations. With this decision of the bank, the policy rate in the country reached its highest level since 2009.
In the text of the BoE resolution, “Global inflationary pressures intensified sharply after Russia invaded Ukraine. This has led to a significant deterioration in the world and UK growth outlook.” Statements were included. The bank did not take a decision on the downsizing of the balance sheet.
Analysts stated that the selling pressure in the USA was also effective in European stock markets close to the close, but the British stock market diverged positively, albeit limitedly, with the expectation that the BoE could be successful in the fight against inflation.
Yesterday, FTSE 100 index gained 0.13 percent in England, DAX 30 index lost 0.49 percent in Germany, CAC 40 index lost 0.43 percent in France and FTSE MIB 30 index lost 0.60 percent in Italy. . Index futures contracts in Europe started the new day with sellers.
Risk appetite in Asian stock markets is also low in the new day, after the seller's course in the US stock markets yesterday.
Analysts stated that the possible negative effects of the policies followed by China in the new type of coronavirus (Kovid-19) epidemic, along with the increasing inflation anxiety in the USA, suppressed the stock markets in Asia.
Analysts, who stated that the Japanese markets, which returned from the three-day holiday, were positively differentiated, said that the dovish stance of the Bank of Japan and the supportive steps of the exchange rate to Japanese exporters were effective in maintaining the buying-weighted course of the Japanese stock markets.
According to the data announced in the region, Tokyo Consumer Price Index (CPI) in Japan increased by 2.5 percent monthly in April, surpassing expectations.
With these developments, Shanghai composite index decreased by 1.9 percent in China, Hang Seng index decreased by 3.6 percent in Hong Kong and Kospi index decreased by 1.2 percent in South Korea, while Nikkei 225 index decreased by 0 percent in Japan. 6 gained value.
Domestically, the BIST 100 index, which was in an upward trend yesterday, partially reversed its gains in parallel with the selling trend in the US stock markets close to the closing, but closed the day with an increase of 1.47 percent at 2,466.26 points.
After closing at 14.8646 with an increase of 0.9 percent yesterday, the Dollar/TRY is trading at 14.8720 at the opening of the interbank market today.
Analysts stated that the data in the real effective exchange rate in the country and the employment report in the USA abroad will be followed today.
Explaining that technically, the BIST 100 index is in the support position of 2,420 points, the analysts said that the 2,480 and 2,520 levels stand out as resistance.
The data to be followed in the markets today are as follows:
14.30 Turkey, April real effective exchange rate
15.30 US, April employment report
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