While a positive outlook was observed in the global markets this morning, with the easing of concerns about the Omicron variant in the new type of coronavirus (Kovid-19) epidemic, today the current account balance in the USA and the consumer confidence index in the Eurozone, and President Recep Tayyip Erdoğan in Turkey. The reflections of the practices announced by the s for the economy will be followed.
While the developments regarding the epidemic continue to be the determining factor in the pricing of the stock markets, yesterday the World Economic Forum (WEF) announced that it has postponed its annual meetings, known as the Davos Summit, which were planned to be held on January 17-21 next year, until the summer of 2022 due to the rapid spread of the Omicron variant. The Netherlands also went into closure from December 19 until mid-January next year as part of epidemic measures.
In England, the news that the government is considering increasing the restrictions on the epidemic in order to reduce the burden of the health system in the face of increasing cases was reflected in the press. On the other hand, British Prime Minister Boris Johnson, in his statement after the markets closed, stated that the situation regarding the epidemic is extremely difficult, but that no new restrictions will be introduced at the moment, and that the possibility of taking further measures is reserved.
While a similar statement came from the White House, it was reported that US President Joe Biden will announce his new policy regarding the increasing Kovid-19 cases in the country, but there is no closure on their agenda.
On the other hand, Moderna announced that the vaccine developed against Kovid-19 produces a strong antibody response against the Omicron variant.
With these developments, it is observed that the stock markets, which fell sharply yesterday, have a positive outlook with the easing of the concerns about the Omicron variant, and the new day has started with buyers in the US and European index futures contracts and Asian stock markets.
While the New York stock market followed a negative course with the declines in banking, travel and technology shares, the Dow Jones index lost 1.23%, the S&P 500 index 1.14 percent and the Nasdaq index 1.24 percent. After closing at 96.6 with a decrease of 0.1 percent yesterday, the dollar index is at 96.5 levels today. The US 10-year bond yield, which fell to 1.3540 percent yesterday, the lowest level since December 3, was stabilized at 1.43%.
On the European side, stock markets fell an average of 1.2 percent yesterday due to concerns over the Omicron variant. The FTSE 100 index decreased by 0.99 percent in England, the DAX 30 index decreased by 1.88 percent in Germany and the CAC 40 index decreased by 0.82 percent in France. After closing at 1.1278 with an increase of 0.4 percent yesterday, the euro/dollar parity is following a horizontal course.
In Asia, news followed that the People's Bank of China will continue to lower the policy rate, while the Japanese parliament enacted an additional 36 trillion yen ($320 billion) budget for the 2021 fiscal year. With the easing of the concerns about the Omicron variant, the Nikkei index in Japan is close to the closing, with an increase of 2 percent, the Shanghai composite index in China by 0.6 percent, the Sensex index in India by 1.7 percent and the Kospi index in South Korea with an increase of 0.5 percent. .
In Borsa Istanbul, where domestic volatility was high and the transaction volume record was broken yesterday, the BIST 100 index was cut off twice during the day and closed the day at 2,056.36 points with a 1.35 percent depreciation compared to the previous close. On the exchange rates side, there was a sharp decline after President Recep Tayyip Erdogan's statements on the economy after the Cabinet Meeting.
Stating that they will offer a new financial alternative to citizens who want to relieve their concerns about the rise in the exchange rate while evaluating their savings, Erdoğan said, "From now on, no citizen will need to switch their deposits from Turkish lira to foreign currency because 'the exchange rate will be higher'." said. Stating that they will reduce the withholding tax on dividend payments to be made by companies to 10 percent, Erdoğan stated that new tools will be developed with market stakeholders in order to bring gold under the pillow to the economy. Erdogan also emphasized that Turkey has no intention of taking the slightest step back from the free market economy and foreign exchange regime.
The dollar/TL, which was traded at its peak at 18.3674 before the statements, fell rapidly after the speech and fell to 12.2756, depreciating by 33.2 percent. Dollar/TRY continued its downward trend at the opening of the interbank market today and went down to 12,1260 levels.
In the meantime, Borsa İstanbul AŞ announced that the up-step rule will also be applied today in short selling transactions for the stocks in the BIST-50 index.
Analysts stated that after President Erdoğan's speech, large amounts of foreign exchange were sold in banks, which brought about a sharp decline in exchange rates, adding that new financial products and incentives, the details of which are expected to be announced today, will support the balance of the exchange rate.
Analysts, who stated that the volatility in the shares of companies with foreign exchange liabilities, dividends and companies operating in the insurance sector may increase, drew attention to the high volatility on the futures side due to the foreign exchange positions of the investors.
Analysts noted that today, in addition to the consumer confidence index in the country and the Euro Zone, current account balance data in the USA will be monitored, technically, the BIST 100 index's level of 2,200 is resistance and 1,975 points is support.
The data to be followed in the markets today are as follows:
10.00 Turkey, December Consumer Confidence Index
16.30 US, 3rd quarter current account balance
18.00 Eurozone, December Consumer Confidence Index
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