Increasing inflation pressure in the USA forced the Fed to take a step faster than expected, while the bank, which was hawked in its guidance, increased the volatility in asset prices.
In the minutes of the meeting of the Federal Open Market Committee (FOMC), held on December 14-15, 2021, published by the Fed yesterday, it was emphasized that the possibility of an interest rate hike earlier than expected increased.
"Members generally noted that given the outlook for the economy, the labor market, and inflation, it may be necessary to raise the federal funds rate sooner or more quickly than members previously anticipated," the minutes said. statement was included.
In the minutes, it was stated that some members stated that it would be appropriate to start reducing the size of the bank's balance sheet after the interest rate began to increase.
On the macroeconomic data side, private sector employment in the USA increased by 807 thousand people in December last year, rising above the market expectations.
Analysts stated that after the latest data and minutes announced, it is considered that the Fed's first rate hike will be in May, but that the possibility of a rate hike in March has increased considerably.
Analysts stated that the market expectations were a 15 basis point increase with a 67 percent probability in March yesterday, and after the minutes, these expectations increased to 20 basis points with a 76 percent probability.
While the prices in question supported the sales that have been effective in the bond market since the beginning of the week, the US 10-year bond yield rose to 1.73 percent, the highest level since April 2021.
While there have been pullbacks in cryptocurrencies and commodity prices after the Fed's statements, Bitcoin is currently trading at $42,980 with a decrease of 2.3 percent in the new day after the 5 percent decrease yesterday. The ounce price of gold, on the other hand, continued its decline, which started from $ 1,830 yesterday, to the limit of $ 1,800.
After the steepening of the US yield curve, the technology-intensive Nasdaq index fell 3.34 percent, recording its steepest decline since February 25, 2021.
While the S&P 500 index and Dow Jones index depreciated by 1.94 percent and 1.07 percent, the index futures contracts in the USA continue their course with sellers at the opening of the new day.
While the intense data calendar in Europe was placed in the focus of investors today, the stock market, which closed yesterday before the Fed minutes, followed a positive course.
Yesterday, the FTSE 100 index gained 0.16 percent in the UK, the DAX index gained 0.74 percent in Germany, the CAC 40 index gained 0.81 percent in France and the FTSE MIB 30 index gained 0.74 percent in Italy. European indices are negative in futures today.
The selling course in the US stock markets has also moved to the new day with the Asian stock markets. While sales are concentrated especially in technology stocks, the restrictions implemented after the increasing number of cases with the Omicron variant in the new type of coronavirus (Kovid-19) epidemic in Asia also negatively affected the risk appetite.
According to the macroeconomic data announced today in Asia, the Purchasing Managers Index (PMI) of the service sector in Japan rose to 52.1 and to 53.1 in China.
With these developments, the Nikkei 225 index in Japan was 2.66 percent, the Shanghai composite index in China was 0.17 percent, the Hang Seng index in Hong Kong was 0.33 percent and the Kospi index in South Korea was 0.98 percent. lost.
Today, the intense data agenda will be followed, including weekly money and bank statistics in the country, Consumer Price Index (CPI) in Germany, Producer Price Index (PPI) in the Euro Zone and ISM non-manufacturing index in the USA abroad.
Analysts said that technically, 1.960 and 1.930 levels in the BIST 100 index are in the support position, while 2.050 points are in the resistance position.
The data to be followed in the markets today are as follows:
10.00 Germany, November factory orders
12.30 UK, December services sector and composite PMI
13.00 Euro Zone, November PPI
14.30 Turkey, weekly money and bank statistics
16.00 Germany, December CPI
16.30 US, November foreign trade balance
16.30 US, weekly jobless claims
18.00 US, December ISM non-manufacturing PMI
18.00 US, factory orders for November
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