Global markets focused on the US inflation data to be announced on Friday and the European Central Bank (ECB) meeting to be held on Thursday this week, after the US workforce statistics announced last week exceeded expectations.
As inflation concerns continue to have an impact on asset prices around the world, the US inflation data to be released on Friday this week has placed the focus of investors.
Although the employment data announced last week, indicating that the wheels in the US economy continue to turn rapidly, calmed the recession concerns, the forecasts that the US Federal Reserve (Fed) could continue its 50 basis point interest rate steps until the end of the year also increased.
While non-agricultural employment in the country increased by 390 thousand people in May, exceeding market expectations, the unemployment rate remained unchanged at 3.6 percent.
Average hourly earnings, which the Fed watches closely, increased by 0.3 percent in the same period to $31.95, but fell short of projections.
On the other hand, the US government announced that some of its sanctions on China to combat inflation could be lifted or rates could be partially reduced.
On the other hand, developments that may adversely affect inflation expectations around the world continue to be experienced.
While the country's oil demand is expected to increase after China gradually lifted the restrictions it has implemented in the fight against the new type of coronavirus (Kovid-19) epidemic, Saudi Arabia increased the price of the oil it sold to Asia. The news that the United States might allow Venezuela to export oil to Europe, however, eroded the rise in oil prices.
The barrel price of Brent oil, which reached its highest level since March 9 with 120.6 dollars on Friday, started the new week at 119.5 dollars with a decrease of 0.8 percent.
While Russia's attack on Ukraine's capital Kiev with a missile reduced hopes for peace, the rise in wheat contracts in the US futures markets approached 4 percent.
With these developments, the S&P 500 index fell by 1.63%, the Nasdaq index by 2.47 percent and the Dow Jones index by 1.05 percent in the New York stock market on Friday. Index futures contracts in the USA started the new week with buyers.
While eyes in Europe turn to the ECB's monetary policy meeting this week, the bank is expected to announce that it will stop asset purchases at the end of this month.
Following the promises made by ECB officials over the last week, money markets are pricing in that the policy rate will be reduced to zero before the end of the third quarter.
While the ECB is not expected to increase interest rates at this meeting, it is considered certain that it will increase interest rates by 25 basis points at the July meeting. On the other hand, the probability of an interest rate hike by 50 basis points at the meeting in September continues to rise.
On Friday, Germany's DAX 30 index fell 0.17 percent, France's CAC 40 index fell 0.23 percent and Italy's FTSE MIB 30 index lost 1.06 percent. Index futures contracts in Europe started the new week with an upward trend.
In Asia, the risk appetite increased with the expectation that after China took the Kovid-19 epidemic under control to a large extent, it started to normalize again and the USA might change the tariffs applied to China.
The economic recovery in China also supported commodity prices, while copper reached its highest level in the last month with $4.38 per pound.
According to the macroeconomic data announced in the country, although the Purchasing Managers Index (PMI) of the service sector in May rose to 41.4, it pointed out that the contraction continued.
With these developments, the Nikkei 225 index in Japan gained 0.6 percent, the Shanghai composite index in China gained 0.9 percent and the Hang Seng index in Hong Kong gained 1.4 percent near the closing.
The BIST 100 index, which saw its all-time high with 2,623.17 points on Friday in the domestic market, decreased with the profit selling that increased its effect at these levels, and closed the day at 2,601.25 points, just below the previous close. The index gained 6.66% on a weekly basis.
Dollar/TL, on the other hand, is trading at 16,5640 at the opening of the interbank market today, after closing at 16.4176 with a decrease of 0.3 percent on Friday.
Analysts stated that the data agenda is calm abroad today and that the real effective exchange rate data will be followed in the country, and said that technically, 2.620 and 2.650 levels in the BIST 100 index stand out as resistance and 2.560 points as support.
The data to be followed in the markets today are as follows:
14.30 Turkey, real effective exchange rate for May
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