In addition to the Fed, the European Central Bank (ECB), the Bank of Japan (BoJ), the Bank of England (BoE) and the Central Bank of the Republic of Turkey (CBRT) are in the focus of investors this week.
The developments regarding the Omicron variant, which emerged in the coronavirus epidemic last week, became the main factor shaping the investor risk perception. Although the statements that the vaccines in use are also effective in the Omicron variant, the pressure on asset prices decreases, especially towards the end of the week, but the spread rate of the new variant, especially in Europe, causes concerns about the subject to remain on the agenda.
FED ANNOUNCEMENT IS WAITED
Analysts said that the rising trend in inflation supports expectations that the bank will further accelerate the reduction in asset purchases, ahead of the recent hawkish US Federal Reserve (Fed) meeting, which will announce its decisions on Wednesday this week.
With these developments, a buying-heavy course was followed in the New York stock market last week, while the S&P 500 index on a weekly basis closed at a record level with an increase of 3.82 percent, the Nasdaq index gained 3.61 percent and the Dow Jones index gained 4.02 percent.
EUROPE IS FIGHTING INFLATION
On the European side, the stock markets, which fell on Friday due to rising inflation led by energy prices and concerns about the Omicron variant, followed a positive trend on a weekly basis. The DAX index rose 2.99 percent in Germany, the FTSE 100 index rose 2.38 percent in the UK, the CAC 40 index in France increased by 3.34 percent and the MIB 30 index in Italy increased by 3 percent. The euro/dollar parity is trading just below 1.13 with a decrease of 0.2 percent today, after following a horizontal course for the second week in a row. A positive trend is observed in European index futures contracts.
Domestically, the BIST 100 index in Borsa Istanbul increased by 6.55 percent last week, bringing the closing record to 2,035.48 points. Thus, the index closed the 9th consecutive week with a rise. After seeing the level of 13.96 last week, the dollar/TL, which completed the week at 13.8798 with the direct foreign exchange selling intervention from the Central Bank of the Republic of Turkey (CBRT), is trading at 13,8420 at the opening of the interbank market today.
Stating that the data agenda abroad is calm today, while the balance of payments and industrial production data for October will be followed in the domestic market, analysts said that technically, 2.070 points are in the position of resistance in the BIST 100 index, while the level of 1.970 is in the support position.
Economists expect the current account to give a surplus of 2 billion 320 million dollars in October. Economists predict that the calendar adjusted industrial production index will increase by 8.26 percent in October compared to the same period of the previous year.
DATA TO FOLLOW IN MARKETS TODAY:
10.00 Turkey, October balance of payments
10.00 Turkey, October industrial production
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