While the Fed officially announced last week that it will start reducing bond purchases by the end of this month, it pointed out that more progress in the labor market is needed to raise interest rates. The data within the scope of the employment report of the USA, which gained importance after the meeting, revealed that non-farm employment in the country increased above expectations in October, and the unemployment rate decreased by 0.2 points, although it remained far from the pre-epidemic levels.
There was no change in the meeting of the Bank of England (BoE), which left the markets in ambiguity about the interest rate hike, last week, when the global October manufacturing and services Purchasing Managers' Index data were also announced in the growth region in general. Christine Lagarde, President of the European Central Bank (ECB), also clearly closed the door to expectations of interest rate hikes in the next year.
Analysts stated that the Fed took the first step back in the supportive monetary policies that it put into effect during the epidemic, by reducing its bond purchases, and that the macroeconomic data was also positive.
Pointing out that the Fed's "we will be patient" message regarding the rate hike is also supported by the ECB and the BoE, analysts also say that the increased investor risk appetite has brought record levels to be seen in the stock markets of many countries, considering the companies' 3rd quarter profitability and the intensified position changes due to November. expressed.
With these developments, the Dow Jones index increased by 0.56 percent, the S&P 500 index by 0.37 percent and the Nasdaq index by 0.20 percent, closing at a record level on Friday last week. It was noteworthy that the indices gained value by 1.42 percent, 2 percent and 3.05 percent on a weekly basis, respectively. The US 10-year bond yield started the new week at 1.47 percent after falling from 1.61% last week and closing at 1.4530 percent. The dollar index, on the other hand, tested 94.6 on Friday, following the strong data in the US's October employment report, and followed a flat course at 94.3 today. It is seen that the index futures contracts of the USA started the new week negatively.
On the European side, after the euro/dollar parity followed a fluctuating course in the 1.15-1.17 band with the influence of the central banks' guidance and the announced data, it closed the week at 1.1570, which is close to the previous closing level. On the equity markets front, on a weekly basis, the DAX index in Germany increased by 2.33 percent, the CAC 40 index in France by 3.08 percent and the MIB 30 index in Italy by 3.42 percent, closing a record. The FTSE 100 index in the UK also rose 0.92 percent. In the new week, the euro is trading at 1.1560 levels, decreasing, albeit slightly, against the dollar. Index futures contracts in Europe, on the other hand, follow a selling course.
On the Asian side, developments regarding the new type of coronavirus (Kovid-19) epidemic and debt rollover problems in some sectors in China continue to be at the focus of the agenda, while the new day seems to have started with a mixed course. Close to the closing, the Shanghai composite index in China increased by 0.4 percent, and the Nikkei index in Japan decreased by 0.3 percent.
In the domestic market, the BIST 100 index in Borsa Istanbul ended at 1,583.59 points with an increase of 0.50 percent on Friday, closing the highest of all time. The index, which broke the closing record on a weekly basis, increased in value by more than 4 percent in this process. Dollar/TL, on the other hand, is trading at 9.6770 levels at the opening of the interbank market today, after seeing the lowest level of 9.4670 and the highest level of 9.7681 last week.
Analysts said that the evaluations of the central bank officials of developed countries, especially the Fed, and the inflation data to be announced in the USA and Germany this week may be determinative on the direction of the stock markets, while the industrial production data in the Euro Area and domestically will be followed.
Stating that the data agenda is weak today, Fed Chairman Powell's speech at the opening of the Gender and Economy Conference and the news flow towards the Euro Group meeting will be followed, analysts reported that, technically, 1.590 and 1.620 levels in the BIST 100 index are in the position of resistance and 1.540 points in the support position. .
The data to be followed in the markets today are as follows:
10.00 Turkey, October real rate of return on financial investment instruments
12.30 Eurozone, November Sentix investor confidence index
18.30 US, Fed Chairman Powell's speech
Comments
No comment yet.