Although inflation and growth-oriented concerns remain on the agenda in global markets, it is observed that the risk appetite remains alive with sector-based activity. .
Risk appetite increased with the interpretation of the US Federal Reserve's (Fed) May meeting minutes, which contain messages in line with market expectations, as an awareness of inflationary pressures and a flexible approach to interest rate hikes and, if necessary, put on hold in September.
Following the minutes indicating that there is no need for rate hikes by more than 50 basis points for now, the importance of data that will give more clues about the course of inflation has increased. In this context, with the personal consumption expenditures report to be announced in the USA today, uncertainties about whether the inflation peaked in the country in March will be tried to be eliminated.
Before this development, the first quarter contraction rate for the US economy was revised from 1.4 percent to 1.5 percent yesterday. Expectations were that the contraction in the country's economy would be revised to 1.3 percent. On the other hand, applications for weekly unemployment benefits fell below expectations with 210 thousand.
Yesterday, the New York stock market followed a positive course with strong financial results from the retail sector. Shares of Macy's gained nearly 20 percent after the company's first-quarter profit beat expectations. Better-than-expected financial results of Dollar Tree and Dollar General also led to 22 percent and 14 percent rise in share prices, respectively. With these developments, the Dow Jones index gained 1.61%, the S&P 500 index gained 1.99 percent and the Nasdaq index gained 2.68 percent. The dollar index continued its downward movement and reached its lowest level in a month with 101.4. The US 10-year bond yield, on the other hand, followed a flat course and stabilized at 2.75 percent.
In the European stock markets, inflationary concerns and uncertainties regarding the Russia-Ukraine war remained at the center of the agenda, while the stock markets remained positive due to the increased risk appetite globally. The £ 15 billion support package announced for households in the UK also supported the positive atmosphere in the share markets. With these developments, the DAX 30 index rose 1.59 percent in Germany, the FTSE 100 index rose 0.56 percent in the UK and the CAC 40 index rose 1.78 percent in France. Euro/dollar parity reached a one-month high at 1.0766, with hawkish monetary policy signals and the pullback in the dollar index.
On the commodity side, the price of Brent oil was stabilized at $ 114.3 after testing the highest level in two months with $ 114.9 per barrel.
According to the data released on the Asian side, inflation in Japan increased by 2.4 percent annually in May, slightly below the expectations. In a statement after the data, Bank of Japan Governor Haruhiko Kuroda stated that core inflation will remain around the central bank's 2 percent target for 12 months unless energy prices fall sharply, adding, "The recent increase in inflation alone will not lead to an immediate withdrawal of monetary stimulus." said. On the other hand, industrial profits in China contracted by 8.5 percent annually in April for the first time in the last 2 years, confirming the expected slowdown in the economy due to the epidemic measures.
Despite the data falling short of expectations, the new day started positively in Asia, led by purchases from Chinese technology companies. The Seng index rose 2.1 percent.
BIST 100 index closed the day at 2,450.84 points with 1.35 percent gain in value in Borsa Istanbul, which was followed by a buyer-oriented course in the country yesterday. Dollar/TL is traded at 16.3590 at the opening of the interbank market today, after the Central Bank of the Republic of Turkey (CBRT) kept the interest rates at 14 percent and closed the day at 16.3669 with a flat course.
Analysts stated that the positive atmosphere in the markets continued after the Fed's meeting minutes and said that the news flow on retail and technology stocks also supported the share markets.
Analysts stated that today the CBRT's financial stability report will be followed in the country, and personal income and expenditures data in the USA abroad will be followed, as well as the Turkey evaluation of the international credit rating agency Moody's, which is expected to be published after the markets close, is at the center of the agenda.
Analysts stated that technically, the BIST 100 index is at the support level of 2,350 points, and the levels of 2.470 and 2.500 are in the resistance position.
The data to be followed in the markets today are as follows:
10.00 Turkey, CBRT's financial stability report
15.30 US, April personal income and expenses
17.00 USA, May University of Michigan consumer confidence index
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