While the world stock markets followed a positive trend last week, the New York stock market diverged negatively due to inflation pressures. Analysts noted that they expect inflation concerns to be effective in pricing in the new week, and also stated that the meeting between US President Joe Biden and Chinese President Xi Jinping, which is expected to be held today, will also be followed.
According to the data released today, while the Gross Domestic Product (GDP) in Japan contracted by 3 percent, well below the expectations, it also brought questions about the global economic recovery.
It is feared that the increasing number of cases in the new type of coronavirus (Kovid-19) epidemic may worsen the economic recovery, which is already below expectations, after the measures in Asia are brought to the agenda again.
Inflation, which is the focus of pricing in the USA, continues. Minneapolis Fed President Neel Kashkari reiterated that inflation is temporary and stated that higher levels may be seen in a month or two. US Treasury Secretary Janet Yellen said that the best way to reduce price pressures is to combat the Kovid-19 outbreak.
Analysts said that verbal guidance from the US Federal Reserve (Fed) officials is expected to have an impact on the direction of the markets, with the intense data agenda this week after increasing inflation pressures.
After the US 10-year bond yield finished last week with an increase of about 13 basis points from 1.5760 percent, it started the new week with a decrease and stabilized at 1.5600 percent.
The barrel price of Brent oil is trading at $80.9, starting the new week with a depreciation, following a three-week downward trend, while the dollar index is at the level of 95.
On Friday, the S&P 500 index rose 0.72 percent, the Nasdaq index rose 1 percent and the Dow Jones index rose 0.50 percent in the New York stock market. In the New York stock market, it is seen that index futures contracts are moving sideways.
On the European side, data on inflation and growth across the region this week may increase volatility in asset prices as concerns over the COVID-19 outbreak continue to rise.
On Friday, the FTSE 100 index in the UK lost 0.49 percent, while the DAX 30 index in Germany increased by 0.07 percent, the FTSE MIB 30 index in Italy by 0.36 percent and the CAC 40 index in France by 0.45 percent. won.
After falling to the lowest level since July 2020 with 1.1433 last week, the euro/dollar parity is currently at 1.1456, an increase of 0.1 percent compared to the previous close.
According to macroeconomic data announced in China, retail sales increased by 4.9 percent and industrial production by 3.5 percent, surpassing expectations. In Japan, industrial production decreased by 2.3 percent and capacity utilization decreased by 7.3 percent.
Despite the fact that the Central Bank of China (PBoC) provided 1 trillion yuan liquidity to the markets, the Chinese stock market is following a calm course with the concern that the increasing Kovid-9 cases may adversely affect the economic activity before the meeting between US President Joe Biden and Chinese President Xi Jinping.
On the other hand, the third stock exchange in mainland China, established in Beijing, started trading today. 81 companies started to be traded on the stock market, which is aimed to invest in innovation-oriented small and medium-sized enterprises in the growing technology, internet and services sectors in China.
With these developments, the Nikkei 225 index gained 0.51 percent in Japan and 1.1 percent in the Kospi index in South Korea, while the Shanghai composite index in China and the Hang Seng index in Hong Kong increased by 0.1 percent and 0.2 percent in Hong Kong. lost value.
Domestically, the BIST 100 index in Borsa Istanbul on Friday closed the day with a record closing level of 1,638.50 points, with an increase of 0.83 percent.
Stating that the Fed officials' verbal guidance and the bond markets with increased volatility will also be in the focus of investors, analysts stated that if 1,640 points in the BIST 100 index is technically exceeded, 1,660 points will become resistance and 1,590 levels will become support.
The data to be followed in the markets today are as follows:
10.00 Turkey, October house sales
11.00 Turkey, October budget balance
13.00 Euro Zone, foreign trade balance for September
16.30 US, November New York Fed industrial index
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