The Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ group, which consists of some non-OPEC producer countries, decided to continue the plan to gradually reduce the daily oil production cuts determined previously for the August-December period by 400 thousand barrels per month. After the meeting, the price of Brent oil per barrel reached its highest level since October 2018 with $81.8, which supported the concerns that the rise in inflation would continue longer than expected.
While the decreasing risk appetite in parallel with the increasing inflationary pressures caused the exits from the share markets to continue, yesterday, the global access problem to the social media platforms Whatsapp, Instagram and Facebook increased the selling pressure in technology shares.
Discussions on the US debt limit, which are closely followed by the markets, continue to remain on the agenda. If the country's debt limit is not raised or suspended, the Treasury Department's extraordinary measures are soon to be exhausted, while US President Joe Biden accused the Republicans of being "careless" on this issue. Biden asked Republicans to stop blocking Democrats' efforts to suspend the debt limit.
With these developments, the Nasdaq index, in which technology-heavy stocks are traded in the New York Stock Exchange, decreased by 2.14 percent, while the depreciation of Facebook shares exceeded 5 percent. The S&P 500 index fell 1.30 percent to close from its lowest levels in nearly 2.5 months, while the Dow Jones index fell 0.94 percent. The dollar index tested the 94 limit again today after three days of decline. It is seen that the US index futures contracts started the new day with a mixed course.
While the problems related to natural gas supply in Europe remain at the center of the agenda, the finance ministers of the European Union (EU) member countries met yesterday to discuss the increase in energy prices. Making statements after the meeting, Eurogroup Chairman and Irish Finance Minister Paschal Donohoe stated that they agreed to monitor the development of energy prices carefully and to consider this as a factor in budget policies. The EU's drug regulator, the European Medicines Agency (EMA), has also decided that the third dose of the vaccine developed by Pfizer-BioNTech for the treatment of the new type of coronavirus (Kovid-19) can be administered to adults.
Following the developments, the FTSE 100 index in England fell by 0.23 percent, the DAX 30 index in Germany by 0.79 percent and the CAC 40 index in France by 0.61 percent at the close of yesterday. Although the euro/dollar parity had risen to 1.1640 levels yesterday, it went down again today and went below the 1.16 limit. European index futures contracts, on the other hand, follow a buying weighted course.
On the Asian side, liquidity problems in China's real estate sector continued to be a source of concern, with Fantasia Holdings reporting that it could not pay its due debts yesterday, while geopolitical developments were also at the top of the agenda with Taiwan's announcement that 52 Chinese warplanes had entered its air defense area. On the other hand, the US Trade Representative Katherine Tai's signal that trade talks with China will begin yesterday, but that the tariffs on products imported from China will not be lifted immediately, increased the expectations that the trade tension between the country will not be resolved in the short term.
On the macro side, while the Reserve Bank of Australia kept the policy rate unchanged at 0.10 percent in line with expectations, inflation in Japan increased by 0.3 percent in September, and the Purchasing Managers Index (PMI) of the services sector rose to 47.8.
After the developments, the Nikkei 225 index in Japan decreased by 2.3 percent and the Kospi index in South Korea by 1.9 percent, while the Hang Seng index in Hong Kong remained flat. On the other hand, there are no transactions in the Chinese markets due to the holiday.
After the domestic inflation data for September came in above expectations, the BIST 100 index in Borsa Istanbul finished the day at 1,394.37 points, depreciating by 0.51 percent. Dollar/TL, on the other hand, is flat at 8.86 levels at the opening of the interbank market today, after moving in the band of 8.82-8.89 yesterday.
Analysts stated that technically, 1.390 and 1.370 levels in the BIST 100 index stand out as support and 1.420 points as resistance.
The data to be followed in the markets today are as follows:
10.55 Germany, September service sector PMI
11.00 Eurozone, service sector PMI for September
11.30 UK, September services PMI
12.00 Euro Zone, August PPI
14.30 Turkey, September Real Effective Exchange Rate
15.30 US, August foreign trade balance
16.45 US, September services PMI
17.00 US, September ISM services sector PMI
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