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Global markets remain positive

Global markets are following a positive course with the expectations that the policy steps of the hawking central banks will not harm the economic recovery as much as feared.

Global markets remain positive

The possible effects of central banks' changing policy stances on asset prices continue to dominate the markets.

While the concerns that the economic recovery might be hampered by monetary tightening have been calmed by policy makers, local dynamics in the stock markets come to the fore in pricing.

Analysts reported that profitability generally met expectations in the ongoing balance sheet season around the world, the news flow that state-backed funds bought stocks in China and the share buyback steps of companies in the USA supported the stock markets.

Stating that the inflation data to be announced tomorrow in the USA contains the risk of volatility for the markets, the analysts noted that the developments in Ukraine also remain in the focus of the investors.

Before the US inflation data, the US 10-year bond yield was stabilized at 1.95% after reaching its highest level since August 2019 with 1.97 percent.

While oil prices started the third day of this week with a decline after a seven-week upward trend, the steps regarding the release of some of the oil reserves in ADB were effective in the said decline.

Yesterday, the S&P 500 index gained 0.84 percent, the Nasdaq index gained 1.28 percent and the Dow Jones index gained 1.06 percent in the New York stock market. In the US, index futures contracts are also positive in the new day.

While the selling pressure in the bond markets continued after the falconry of the European Central Bank (ECB) in Europe, the upward trend in the stock markets, parallel to the New York stock market, continued yesterday.

While the verbal guidance of the ECB officials continues to be in the focus of the investors, yesterday, the Polish Central Bank increased the policy rate by 50 basis points to 2.75 percent, in line with the expectations.

The euro/dollar parity is currently finding buyers at 1.1430, 0.1 percent above the previous close, after a two-day downward trend.

Yesterday, the DAX index in Germany increased by 0.23 percent, the CAC 40 index in France by 0.27 percent, the FTSE MIB 30 index in Italy by 0.31 percent, while the FTSE 100 index in the UK decreased by 0.08 percent. European indices are following a positive course in futures today.

In Asia, risk appetite remains high with the positive trend in the US markets and the news flow that state-backed funds are buying stocks in China.

However, the increased tension between China and the USA and the increased measures after the acceleration of the spread of new types of coronavirus (Kovid-19) cases draw attention as the main risk factors.

It is feared that the statements that China has not fulfilled its obligations arising from the trade agreements signed during the period of former US President Donald Trump will increase the tension between the two countries.

Close to the closing, Nikkei 225 index gained 1.18 percent in Japan, Shanghai composite index gained 0.80 percent in China, Kospi index in South Korea gained 0.78 percent and Hang Seng index in Hong Kong gained 2.08 percent.

Domestically, the BIST 100 index continued its upward trend yesterday, closing the day at 2.007.14 points with 0.48 percent gain.

Dollar/TL, on the other hand, is trading at 13.58 at the opening of the interbank market today, after closing at 13.5641 with a decrease of 0.2 percent yesterday.

Due to the company balance sheets that continue to be announced, the divergences based on shares and sectors continue.

Analysts said that today the data agenda is calm at home, and foreign trade statistics in Germany and wholesale stocks in the USA will be followed, as well as verbal guidance from the US Federal Reserve and ECB officials abroad.

Analysts, who stated that the developments related to Ukraine may have an impact on asset prices, said that technically, the level of 2.030 in the BIST 100 index is in the position of resistance and the level of 1.980 points is in the position of support.

The data to be followed in the markets today are as follows:

10.00 Germany, December foreign trade balance

10.00 Germany, December balance of payments

18.00 US, December wholesale stocks

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