At the June meeting, which ended yesterday, the Fed increased the policy rate by 75 basis points to the range of 1.50-1.75 percent.
After the inflation data announced last week in the US rose to the peak of 41 years, the Fed's decision to increase interest rates by 75 basis points was the fastest rate hike since 1994.
The Fed's inflation forecast for this year rose from 4.3 percent to 5.2 percent. The growth forecast of the US economy for this year was reduced from 2.8 percent to 1.7 percent.
The median expectation for the funding rate increased from 1.9 percent to 3.4 percent for 2022, from 2.8 percent to 3.8 percent for 2023, and from 2.8 percent to 3.4 percent for 2024. .
Fed Chairman Jerome Powell, in a statement after the meeting, stated that the bank may increase interest rates by 50 or 75 basis points in the July meeting against high inflation, while stating that the 75 basis point increase in the interest rate was unusually large and he did not expect movements of this size to be widespread.
After the statements of Powell, who noted that reducing inflation is their priority and they acted rapidly to do so, the stock markets entered an upward trend with the decreasing uncertainties about the future.
While the USA bond yields decreased slightly from the peak of the last 11 years after the Fed's interest rate decision, the recession pricing in the yield curve decreased.
With the decline of the dollar against other currencies, the dollar index returned from the peak of the last 20 years and stabilized just below 105, while the ounce price of gold followed a horizontal course after the Fed's decisions.
While central banks continue to falter in their fight against inflation on a global basis, the Central Bank of Brazil increased the policy rate by 50 basis points to 13.25 percent.
With these developments, the S&P 500 index gained 1.46 percent, the Nasdaq index by 2.50 percent and the Dow Jones index by 1.00 percent in the New York stock market yesterday. Index futures contracts in the USA started the new day with a rise.
While eyes in Europe are turned to the interest rate decision of the Bank of England (BoE), which will be announced today, it is estimated that the bank will increase the policy rate by 25 basis points to 1.25%.
While the announcement of the European Central Bank (ECB) that it will hold an emergency meeting yesterday drew attention before the Fed's interest rate decision, important decisions regarding monetary policy came out of the meeting.
Accordingly, it was stated that flexibility will be applied in reinvesting the due principal payments of the assets purchased under the Pandemic Urgent Asset Purchase Program (PEPP), while a new tool will be developed to stop the divergence against debt crisis concerns.
After the aforementioned decisions, the bond yields of the countries in the region regressed from the peak of the last 8 years, while the 10-year bond yield of Italy decreased by about 40 basis points to 3.82 percent. Due to the fact that Italy is one of the most indebted countries in the region, the increase in bond yields causes an increase in the risk premium in the region.
On the other hand, supply problems in energy, which is one of the main reasons for the increase in inflation, continue to negatively affect the region by emerging one after another.
Russian energy company Gazprom, which closed 3 valves on Tuesday, stating that some of the gas compressors sent to the German Siemens company for maintenance have not turned yet, announced that one more valve was out of use yesterday. Thus, the amount of natural gas delivered to Europe decreased from 167 million cubic meters to 67 million cubic meters.
Following the explanations on the subject, natural gas contracts for July delivery in Europe increased by 21 percent to 118.25 euros yesterday.
While the European stock markets were dominated by buyers yesterday, the DAX 30 index was 1.36 percent in Germany, the FTSE 100 index was 1.20 percent in the UK, the CAC 40 index was 1.35 percent in France and the FTSE MIB 30 index in Italy was 1 percent. It gained 2.87. Index futures contracts in Europe started the new day with a rise.
In Asian stock markets, a buying weighted trend is observed in parallel with the New York stock market this morning. The Fed and ECB's monetary policy decisions eroded the selling pressure in the bond markets, albeit partially, and relieved the Bank of Japan (BoJ), which was in a difficult situation due to the upward pressure on Japan's 10-year bond yield.
The BOJ had fulfilled its commitment to keep Japan's 10-year bond yield at 0.25 percent by making the biggest bond purchase in recent years during the week before the meeting tomorrow.
The Japanese government, on the other hand, called for measures against the depreciating Japanese yen to the BOJ, which will announce its monetary policy decisions on Friday.
On the other hand, according to the macroeconomic data released today, the foreign trade deficit in Japan was 2 trillion 384.7 billion yen in May, above the expectations.
Close to the closing, Nikkei 225 index gained 0.5 percent in Japan and Kospi index gained 0.3 percent in South Korea, while Shanghai composite index gained 0.4 percent in China and Hang Seng index increased 1.4 percent in Hong Kong. lost.
Domestically, the BIST 100 index, which followed a fluctuating course yesterday, finished the day at 2,531.11 points with an increase of 0.88 percent.
Dollar/TL is trading at 17,2750 at the opening of the interbank market today, after closing at 17,2839 with an increase of 0.1 percent yesterday.
Analysts stated that today, in addition to the housing price index in the country and the BoE's interest rate decision abroad, housing starts, construction permits and weekly unemployment applications in the USA will be followed, technically, 2,560 points of resistance and 2,480 points stand out as support in the BIST 100 index. He said he was out.
The data to be followed in the markets today are as follows:
14.00 England, BoE's interest rate decision
14.30 Turkey, weekly money and bank statistics
14.30 Turkey, April house price index
15.30 US, May housing starts and building permits
15.30 US, weekly jobless claims
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