Inflation concerns and developments regarding the Russia-Ukraine war continue to have an impact on asset prices.
The macroeconomic data released in the USA yesterday showed that import goods may be feeding inflation in the USA at a higher rate than expected, bringing a sales-weighted course in bond markets.
The US 10-year bond yield climbed to 2.83%, the highest level since December 2018, after a two-day decline.
While the US Federal Reserve (Fed) officials continued their hawk guidance, the probability of the Fed's 50 basis points increase in interest rates in the bond markets increased to 91 percent at the meeting in May.
While companies in the US continue to announce their first quarter balance sheets, the financial results of the country's major banks revealed that their net profits decreased in the first quarter. In the first quarter of this year, Goldman Sachs' net profit fell 42 percent, Morgan Stanley's 11 percent, Wells Fargo's 21 and Citigroup's 46 percent.
On the other hand, the strengthening of the concern that the Russia-Ukraine war may intensify is one of the factors that reduce the risk appetite in the markets.
The Russian Ministry of Defense made a statement regarding the latest status of the ship "Moscow" belonging to the Russian Black Sea fleet, which Ukraine announced to have hit with a Neptune missile.
The statement said, “While the Moscow cruiser was towing to its destination port, she lost her balance due to damage to the hull as a result of the explosion of ammunition during the fire. The ship sank in stormy sea conditions."
The Russian Investigation Committee announced that 2 Ukrainian helicopters violated Russian airspace and carried out an attack in the Bryansk region.
While the sanctions against Russia continue to be implemented, the British government reported that the assets of 2 Russian oligarchs, Eugene Tenenbaum and David Davidovich, who are close to Russian oligarch Roman Abramovich, are frozen worth 10 billion pounds.
Continuing its upward trend with the fear that the war might escalate and cause disruptions in oil supply, the barrel price of Brent oil carried its rise for the third day in a row and reached 110.9 dollars with a 2.3 percent gain in value.
Yesterday, the S&P 500 index lost 1.21 percent in the New York stock market, the Nasdaq index fell 2.14 percent and the Dow Jones index lost 0.33 percent.
In Europe, the European Central Bank (ECB) confirmed its plan to end its bond purchases yesterday, while keeping interest rates unchanged as expected.
In the statement, it was stated that the purchases within the scope of the Asset Purchase Program will continue as 40 billion euros per month in April, 30 billion euros per month in May and 20 billion euros in June, and that asset purchases will be terminated in the third quarter.
In the statement, it was stated that interest rates will be increased "gradually" and "slowly", continuing the official guidance of the ECB that any rate hike will occur some time after the bond purchases end.
ECB President Christine Lagarde said that inflation is expected to remain high due to rising energy prices.
Noting that there is no clear time frame for when the interest rates will start to increase, Lagarde stated that after the incentives end, the increase may start maybe weeks, maybe months later.
In the stock markets, which closed yesterday before the sales in the US stock market increased, the DAX 30 index was 0.62 percent in Germany, the FTSE 100 index was 0.47 percent in the UK, the FTSE MIB 30 index was 0.57 percent in Italy and the CAC index in France. 40 gained 0.72 percent.
On the Asian side, the People's Bank of China (PBoC) surprisingly did not change the 1-year lending rate and reserve requirement ratios from key policy rates at its meeting today.
While it was stated that China will reduce the required reserve ratios soon, this situation has eroded the selling pressure in the stock markets.
The dollar/yen parity, on the other hand, continued to rise in the new day due to increasing inflation concerns in the USA, and after reaching the highest level of the last 20 years, 126.56, it was stabilized at 126.4 with an increase of 0.4 percent compared to the previous close.
With these developments, Shanghai composite index in China decreased by 0.1 percent, Nikkei 225 index in Japan decreased by 0.12 percent and Kospi index in South Korea decreased by 0.55 percent.
Domestically, the Central Bank of the Republic of Turkey (CBRT) did not change the policy rate at its meeting yesterday, keeping it at 14 percent in line with expectations.
Continuing its buyer-led course after the decision, the BIST 100 index in Borsa Istanbul gained 0.61 percent, bringing the closing record to 2,475.41 points.
Dollar/TRY is trading at 14,6270 at the opening of the interbank market today, after closing at 14,6124 with an increase of 0.1 percent yesterday.
Analysts said that home sales, short-term external debt statistics and budget balance in the country, and New York Fed manufacturing index, industrial production and capacity utilization data in the USA will be followed abroad.
Stating that a calm course will be followed especially in the exchange rate and bond markets due to the closed US and European markets, analysts noted that technically, 2,500 points in the BIST 100 index are in the resistance position, and the 2.410 and 2.390 levels are in the support position.
The data to be followed in the markets today are as follows:
10.00 Turkey, February short-term external debt statistics
10.00 Turkey, house sales in March
10.00 Turkey, March budget balance
15.30 US, April New York Fed manufacturing index
16.15 USA, industrial production and capacity utilization rate in March
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