Yesterday, the macroeconomic data announced in the USA gave mixed signals regarding inflation and growth, making pricing difficult in the markets.
The "Beige Book" report of the US Federal Reserve (Fed), which includes evaluations of the current situation in the American economy, revealed that the economic growth rate has slowed down in some regions of the USA.
In the report, which was prepared with analyzes from 12 branches of the bank, it was noted that all 12 Fed regions reported continued economic growth, the majority of regions indicated mild or moderate growth, and 4 regions reported moderate growth. In the report of the Fed, it was stated that the growth rate of 4 regions has slowed down since the previous period.
While the Procurement Management Institute (ISM) manufacturing index in the USA increased by 0.7 points compared to the previous month to 56.1 in May, contrary to the market expectations, the number of JOLTS job vacancies in the country decreased to 11 million 400 thousand in April in line with the forecasts.
On the other hand, Fed officials maintained a hawkish tone in their statements yesterday, while San Francisco Fed President Mary Daly stated that she supports aggressively raising interest rates until inflation falls.
st. Louis Fed President James Bullard stated that it is still too early to say that inflation has peaked, while Richmond Fed President Thomas Barkin said that there is no sign of a recession in the macroeconomic data and that it is fully in line with the expected interest rate theme for the next few meetings.
In contrast, JPMorgan CEO Jamie Dimon said at a conference that the economy was heading for a "hurricane" due to the Fed's tightening of monetary policy and the war in Ukraine.
While the Bank of Canada increased the policy rate by 50 basis points to 1.50 percent at the meeting yesterday, it stated that they were ready to take stronger steps in the fight against inflation if necessary.
Before the meeting where the energy and oil ministers of 10 non-OPEC oil producing countries led by OPEC and Russia will come together and decide on the strategy for July, the price of Brent oil per barrel decreased by more than 1 percent to $ 113. The OPEC+ group decided to increase production by approximately 432 thousand barrels per day in June.
Analysts stated that the claim that Saudi Arabia is ready to close this gap was effective in the decrease in the amount produced by Russia in the face of sanctions.
With these developments, the S&P 500 index fell 0.75 percent, the Nasdaq index 0.72 percent and the Dow Jones index 0.54 percent in the New York stock market yesterday. Index futures contracts in the USA started the new day with a mild buying trend.
While it is observed that risk appetite remained low in Europe with inflation concerns, European stock markets also regressed in parallel with the decline in the US stock markets yesterday.
While the hawkish stance of the European Central Bank (ECB) members is getting stronger, the supportive statements regarding the 50 basis point interest rate increase are also effective in increasing the risk perception in the markets.
Yesterday, FTSE 100 index lost 0.98 percent in England, DAX 30 index lost 0.33 percent in Germany, CAC 40 index lost 0.77 percent in France and FTSE MIB 30 index lost 0.90 percent in Italy. Index futures contracts in Europe started the new day with a flat course.
Risk appetite in Asian stock markets is also low in the new day, after the seller's course in the US stock markets yesterday.
With the decrease in the number of cases in China's new type of coronavirus (Kovid-19) epidemic, the return of the economy to normal supports the stock markets.
With these developments, Shanghai composite index increased by 0.3 percent in China close to the closing, Hang Seng index decreased by 1.2 percent in Hong Kong, Nikkei 225 index decreased by 0.1 percent in Japan and Kospi index decreased by 1 percent in South Korea. .
Domestically, the BIST 100 index, which saw its highest level of all time with 2,585.78 points yesterday, gained 0.85 percent compared to the previous day and carried the closing record to 2,568.76 points.
Dollar/TL, on the other hand, is trading at 16,4420 at the opening of the interbank market, after closing at 16,3931 with a decrease of 0.1 percent yesterday.
Analysts stated that today the Producer Price Index (PPI) in the Euro Zone, ADP private sector employment and factory orders in the USA, and the news from the OPEC meeting will be followed. He said he was out.
The data to be followed in the markets today are as follows:
12.00 Euro zone, PPI for April
13.00 OPEC meeting
14.30 Turkey, weekly money and bank statistics
15.15 USA, May ADP private sector employment
15.30 US, weekly jobless claims
17.00 US, factory orders for April
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