While the Russia-Ukraine war caused the risk perception in the markets to remain high, Powell's statements yesterday supported the stock markets.
In his statement yesterday, Powell said that the bank was inclined to support the 25 basis point rate hike at its March meeting, and that they were ready to act more aggressively if inflation did not decrease as expected. Stating that they will be flexible on interest rate hikes in the coming months, Powell stated that they are never on "auto-pilot".
Stating that it is not yet clear how the Russia-Ukraine war will affect the interest rate outlook, Powell stated that the Fed should be on the alert because of the war in Ukraine.
In the Fed's "Beige Book" report released yesterday, it was reported that prices were increasing at a strong pace across the country, with companies expecting additional price increases in the next few months.
On the other hand, anti-Russian measures continue to be taken around the world. The US administration reported that new export controls will be introduced targeting Russia's oil refining and Belarus' technology imports.
While the USA announced that it is considering sanctioning a total of 22 more Russian companies, the International credit rating agency Fitch Ratings downgraded Russia's credit rating from "BBB" to "B", and Moody's from "Baa3" to "B3".
Following the drafting of the bill that the US will ban Russian oil, liquefied natural gas and petrochemical products, the price of Brent oil per barrel reached its highest level since August 2013 at $ 116.8 and stabilized at $ 115.8.
While Powell's statements and inflation concerns increased the selling pressure in bond markets, the US 10-year bond yield increased from 1.68% to 1.86 percent yesterday.
The ounce price of gold, on the other hand, depreciated by 1 percent yesterday and regressed to $ 1,925, while it remains flat on the new day.
Analysts noted that the course of the Russia-Ukraine war is expected to continue to be influential on asset prices, adding that the news flow on the subject is in the focus of investors.
However, Powell will attend the session of the US Senate's Banking, Housing and Urban Affairs Committee on the second day of his presentation on the semi-annual Monetary Policy Report.
Yesterday, S&P 500 index gained 1.86 percent, Dow Jones index gained 1.79 percent and Nasdaq index gained 1.62 percent in New York stock market. Index futures contracts in the US continue their buying-heavy course, albeit limited, on the new day.
Although a positive course was observed in the European stock markets yesterday, the Russia-Ukraine war continued to be the main factor that eroded the risk appetite in the region.
Germany-based Siemens Energy announced that it was suspending all new business activities with Russia, while Airbus stopped sending spare parts to Russia and supporting Russian airlines.
On the other hand, Joachim Nagel, President of the German Central Bank (Bundesbank), stated that rising energy prices will feed inflation and that the European Central Bank (ECB) should focus on normalizing its monetary policy. Russia's largest bank, Sberbank, announced that it was withdrawing from the European market after the sanctions.
While MSCI and FTSE announced that they will remove Russian assets from their indices and evaluate them in a separate status, the Russian stock market will be closed to trading today.
With these developments, the euro/dollar parity finds buyers at 1.1100 in the new day after testing the lowest level since May 2020 with 1.1058 yesterday.
Yesterday, the DAX index gained 0.69 percent in Germany, the CAC 40 index gained 1.59 percent in France and the FTSE MIB 30 index gained 0.70 percent in Italy, while the FTSE 100 index in the UK remained flat. European indices started futures trading today with a mixed outlook.
Asian stock markets also follow a buying-heavy trend today.
According to the macroeconomic data announced in the region, the Service Industry Purchasing Managers Index (PMI) in Japan fell to 44.2 and to 50.2 in China.
Close to the closing, Japan's Nikkei 225 index gained 0.77 percent, Hong Kong's Hang Seng index rose 0.51 percent, South Korea's Kospi index gained 1.42 percent, and China's Shanghai composite index gained 0.10 percent.
Domestically, while the eyes are turned to the Consumer Price Index (CPI) data to be announced today, the developments in the Russia-Ukraine war are also closely followed.
Yesterday, the BIST 100 index rose by 0.82% to 1,986.09 points, while the dollar/TL, which completed the day at 14,1115 with an increase of 1.5%, is trading at 14,0860 at the opening of the interbank market today.
Economists participating in AA Finans' expectation survey expect the CPI to increase by 4.14 percent in February. According to the average of the February inflation expectations of economists (4.14%), it is calculated that annual inflation, which was 48.69 percent in the previous month, will rise to 53.45 percent.
In addition, domestic currency and bank statistics, worldwide services sector and composite PMI, Eurozone Producer Price Index (PPI), weekly jobless claims in the US, factory orders and durable goods orders will be followed.
Analysts said that technically, 2.010 points are in the resistance position in the BIST 100 index, and 1.930 and 1.870 levels are in the support position.
The data to be followed in the markets today are as follows:
10.00 Turkey, February CPI
11.55 Germany, February service sector and composite PMI
12.00 Eurozone, service sector and composite PMI for February
12.30 UK, February service sector and composite PMI
13.00 Eurozone, January PPI
14.30 Turkey, weekly money and bank statistics
16.30 US, weekly jobless claims
17.45 US, services sector and composite PMI for February
18.00 US, ISM non-manufacturing PMI
18.00 US, January factory orders and durable goods orders
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