China's decision to implement supportive financial policies was added to the support packages announced at the weekend to reduce energy costs in Europe. While the aforementioned statement increased the risk appetite in the global stock markets, albeit to a limited extent, yesterday, Russia announced that they had stopped the natural gas flow to Europe until the sanctions were lifted. While the natural gas contract for September maturity in Europe increased by about 13 percent to 240 euros yesterday, Europe's search for an energy source continues.
Analysts stated that natural gas tanks in Europe are more than 80 percent full, but this may be enough to meet the region's consumption for a maximum of 3 months.
While the natural gas-induced distress threatens the course of the regional economies, the expectation that the European Central Bank (ECB) will raise interest rates by 75 basis points to combat inflation at its meeting on Thursday remains strong. Despite the expectations for the ECB, the euro continues to depreciate against the dollar. Euro/dollar parity closed the day at 0.9933 after falling to the lowest level since December 2002 with 0.9878 yesterday.
On the other hand, Liz Truss, who was elected as the leader of the ruling Conservative Party in England, became the new prime minister of the country. With these developments, yesterday the FTSE 100 index gained 0.09 percent in the UK, the DAX 40 index gained 2.22 percent in Germany, the CAC 40 index in France was 1.20 percent and the FTSE MIB 30 index in Italy gained 2.01 percent. lost. In Europe, index futures contracts started with a mixed trend.
Yesterday, the Organization of Petroleum Exporting Countries (OPEC) and the OPEC+ group, which consists of some non-OPEC producer countries, decided to reduce oil production by 100,000 barrels per day in October. After the decision, the price of Brent oil per barrel increased by 2.4 percent to $ 95.1 and started the new day at $ 94.6 with a decrease of 0.5 percent. Markets in the US, which were closed for a holiday yesterday, are reopening today. The dollar index is at 109.7 on the new day, after seeing its highest level in the last 20 years with 110.3 yesterday.
While the possibility that the Fed will increase interest rates by 75 basis points this month remains strong in the pricing in money markets, index futures contracts in the USA started the new day with a limited increase.
A positive trend stands out in Asian stock markets today.
While the Chinese government announced that they will support the economy in the third quarter, the People's Bank of China (PBoC) lowered the foreign exchange rate that local institutions had to hold as reserves. While the said decision was expected to support the yuan against the dollar, the expectations that policy makers would divert their attention from the zero Covid-19 policy to the economy with the decisions taken had a positive impact on the markets.
The fact that household expenditures remained below expectations in the macroeconomic data announced in Japan, eroded the upward trend in the stock markets. On the other hand, the central banks of the countries in the region continue their hawkish policies in the fight against inflation. While the Reserve Bank of Australia (RBA) increased the policy rate by 50 basis points to 2.35 percent at its meeting today, it gave the message that it will maintain its hawkish stance in the upcoming meetings. Increasing Kovid-19 cases in Hong Kong continue to put pressure on the country's share markets.
With these developments, while the Nikkei 225 index in Japan remained flat, the Shanghai composite index in China gained 1.16 percent and the Kospi index in South Korea gained 0.2 percent. Hong Kong's Hang Seng index fell 0.3 percent.
Domestic stock markets continue to diverge positively from global stock markets
Yesterday, the BIST 100 index closed the day at 3,358.37 points with a gain of 4,21 percent, reaching the highest daily close of all time, and brought its highest level record to 3,367.31 points. The total transaction volume was also at a record level with 105.3 billion liras.
Dollar/TRY is trading at 18.2150 at the opening of the interbank market today, after closing at 18.2191 with an increase of 0.1 percent yesterday.
Analysts stated that the real effective exchange rate in the country, factory orders in Germany, the service sector in the USA and the combined Purchasing Managers Index (PMI) data will be followed today. He said he was in support.
The data to be followed in the markets today are as follows:
09.00 Germany, factory orders for July
14.30 Turkey, August real effective exchange rate
16.45 US, August services and composite PMI
17.00 US, August ISM non-manufacturing PMI
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