The statements regarding the policy steps to be taken by the Fed after the increasing inflation pressure in the USA continue to affect asset prices.
Speaking at the panel on the global economy held within the scope of the International Monetary Fund (IMF) Spring Meetings yesterday, Powell said that a 50 basis point rate hike is "on the table" at the Fed's meeting that will take place on 3-4 May.
Pointing out that inflation is already very high and monetary policy is still supportive compared to the past, Powell noted that it is appropriate to act a little faster.
st. Louis Fed President James Bullard emphasized that the Fed should take more drastic steps and said that the 75 basis point interest rate hike has been done before and this is not the end of the world.
Following the aforementioned statements of the Fed officials, pricing began in the bond markets, with a 50 basis point increase in interest rates in all three meetings to be held until July.
Analysts noted that the Fed's 50 basis point rate hike in May was definitely priced in the bond markets, and that they will begin to look for clues for June and July in the next data and guidance.
The New York stock market, which started the day with buyers, went down after Powell's statements. The S&P 500 index fell 1.48 percent, the Nasdaq index fell 2.07 percent and the Dow Jones index fell 1.05 percent. Index futures contracts in the USA also started the new day with a decline.
On the other hand, a mixed course was observed in the European stock markets, which were closed before the sales in the US stock exchanges strengthened. The direction of the European Central Bank (ECB) President Christine Lagarde and the news flow about the Russia-Ukraine war remain at the center of the agenda.
In his speech yesterday, Lagarde stated that there are structural differences between the European economies and the US economy and that the two economies are moving at different speeds, and that they will follow the future macroeconomic data to make a decision on the interest rate hike.
Yesterday, DAX 30 index gained 0.98 percent in Germany and CAC 40 gained 1.36 percent in France, while FTSE 100 index in England decreased by 0.02 percent, and FTSE MIB 30 index in Italy decreased by 0.29 percent. . Index futures contracts in Europe started the new day with sellers.
While the selling trend in the US stock markets was carried over to the new day with the Asian stock markets, the Chinese stock market started to rise close to the closing and diverged positively.
While the restrictions in practice due to the new type of coronavirus (Kovid-19) epidemic in China have started to be relaxed, albeit slowly, a certain number and priority company employees are allowed to go to work.
Analysts noted that the said step is important for normalization, and that the Chinese authorities' call for large investors to buy shares also reduced the selling pressure in the stock markets.
According to the data announced in the region, the Consumer Price Index (CPI) in Japan increased by 1.2 percent annually, in line with the expectations. According to leading data in the country, the manufacturing industry Purchasing Managers Index (PMI) decreased to 53.4 in April, while the service sector PMI rose to 50.5.
With these developments, Shanghai composite index gained 0.8 percent in China near the closing, Nikkei 225 index gained 1.6 percent in Japan, Kospi index was 0.8 percent in South Korea and Hang Seng index was 0 percent in Hong Kong. 1 lost value.
Domestically, after the BIST 100 index hit its all-time high level of 2,562.28 points during the day yesterday, it increased the closing record to 2,556.81 points with an increase of 1.22 percent compared to the previous close.
After closing at 14.7065 with an increase of 0.2 percent yesterday, the Dollar / TL is trading at 14,7130 at the opening of the interbank market today.
Analysts stated that the intense data agenda, especially the manufacturing industry and service sector PMI, which will be announced worldwide today, will be followed, and that the statements of ECB President Christine Lagarde and Bank of England (BoE) Governor Andrew Bailey are also in the focus of investors as part of the ongoing IMF meetings. .
Analysts said that 2.600 points in the BIST 100 index are in the resistance position from a technical point of view, and that the 2.490 and 2.440 levels will come to the fore as support.
The data to be followed in the markets today are as follows:
10.00 Turkey, April financial services confidence index
10.30 Germany, April manufacturing industry and service sector PMI
11.00 Eurozone, April manufacturing and services PMI
11.30 UK, April manufacturing and services PMI
12.00 Euro Zone, current account balance for February
16.45 US, April manufacturing and services PMI
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