According to the macroeconomic data announced yesterday, private sector employment in the USA increased by 128 thousand in May, the lowest increase since 2020, when the new type of coronavirus (Kovid-19) epidemic was intensely effective.
Analysts said that the risk appetite in the markets increased with the expectation that the slowdown in the labor market will contribute positively to the US Federal Reserve's (Fed) fight against inflation.
Stating that the data in the employment report to be announced today are expected to point to a slowdown in the labor market, analysts said that non-farm employment data will be followed closely.
On the other hand, Fed officials maintained a hawkish tone in their statements, while Fed Vice Chairman Lael Brainard said that it is unlikely that the Fed will pause interest rate hikes anytime soon. Brainard emphasized that they still have a lot of work to do to reduce inflation to the 2 percent target.
Cleveland Fed President Loretta Mester also stated that inflation has not reached its peak yet, and that downward readings that continue for a few months should be seen. Mester said that in each of the Fed's next two meetings, interest rates should be increased by half a point.
The OPEC+ group, which consists of 13-member Organization of Petroleum Exporting Countries (OPEC) led by Saudi Arabia and some non-OPEC producing countries led by Russia, decided to increase oil production by approximately 648,000 barrels per day in July.
On the other hand, oil prices rose to the level of 117 dollars yesterday due to the concern that the production increase in question may be insufficient against the global demand.
With these developments, the S&P 500 index gained 1.84 percent, the Nasdaq index by 2.69 percent and the Dow Jones index by 1.33 percent in the New York stock market yesterday. Index futures contracts in the USA started the new day with a flat course.
While the stock markets in Europe are following a positive course with the purchases that strengthened near the end, parallel to the US markets, it is priced in the bond markets that the European Central Bank (ECB) may raise interest rates by 25 basis points in the next two meetings.
Analysts noted that ECB officials hawked their tone after the record-breaking inflation in the region, but ECB President Christine Lagarde's guidance outweighed the pricing in the market, adding that the policy rate is expected to be reduced to 0 percent at the end of the third quarter.
On the other hand, the Central Bank of Ukraine announced that it has increased the policy rate from 10 percent to 25 percent for the first time since the beginning of the war in the country.
Russia, on the other hand, restricts the export of noble gases used in chip production, and it is feared that the said step will increase inflation pressure around the world.
A meeting was held yesterday between Russian Deputy Defense Minister Aleksandr Fomin and United Nations (UN) Deputy Secretary General for Humanitarian Affairs Martin Griffiths to evaluate Ukraine's grain exports, which is another issue that negatively affects global inflation.
In a written statement from the Russian Ministry of Defense, Fomin reportedly conveyed to Griffiths that Russia did not block Ukraine's ports in the Black Sea, but that Ukraine was responsible for clearing mines in the Black Sea ports.
Yesterday, DAX 30 index gained 1.01% in Germany, CAC 40 index gained 1.27 percent in France and FTSE MIB 30 index gained 0.59 percent in Italy. Index futures contracts in Europe started the new day with a rise.
While yesterday's buying-heavy trend in the US stock markets moved to the Asian markets in the new day, there were no transactions in the Chinese and Hong Kong stock markets due to the holidays.
With these developments, Nikkei 225 index in Japan gained 1.2 percent and Kospi index in South Korea gained 0.40 percent close to the closing.
Domestically , the BIST 100 index, which saw its highest level of all time with 2,603.34 points yesterday, gained 1.28 percent compared to the previous day and carried the closing record to 2,601.56 points.
Dollar/TL, on the other hand, is trading at 16.4840 at the opening of the interbank market today, after closing at 16.4673 with an increase of 0.5 percent yesterday.
While the eyes are turning to the inflation data to be announced today, economists participating in the expectations survey of AA Finans expect the CPI to increase by 5.49 percent monthly and 77.72 percent annually in May.
Analysts also stated that the data in the worldwide service sector and composite Purchasing Managers Index (PMI) and foreign trade in Germany, retail sales in the Eurozone and employment in the USA will be followed, and that technically, the BIST 100 index will reach the levels of 2,620 and 2,650. resistance said 2,560 points stand out as support.
The data to be followed in the markets today are as follows:
09.00 Germany, April foreign trade data
10.00 Turkey, May CPI and Domestic PPI
10.55 Germany, May services sector and composite PMI
11.00 Eurozone, May services sector and composite PMI
12.00 Eurozone, April retail sales
15.30 US, May employment report
16.45 US, May services sector and composite PMI
17.00 US, ISM non-manufacturing PMI
Comments
No comment yet.