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Global markets seek direction before Fed

After a positive course in global markets yesterday, it is noteworthy that the new day started with mixed prices in Asian stock markets, and sellers on the side of US and European index futures.

Global markets seek direction before Fed

In the USA, the Supply Management Institute (ISM) manufacturing industry index, which measures the state of the manufacturing sector, decreased by 0.3 points to 60.8 in October compared to the previous month. The Manufacturing Industry Purchasing Managers Index (PMI) in the country was revised from 59.2 to 58.4.

Despite the manufacturing industry indicators that fell short of expectations, it is seen that global stock markets continue to find support from corporate profitability before the US Federal Reserve's (Fed) Open Market Committee meeting, whose decisions will be announced tomorrow.

Analysts stated that the Fed is expected to announce that it will reduce its monthly asset purchase program of 120 billion dollars, and said that the text of the decision and the statements of Fed Chairman Jerome Powell will be important in shaping the expectations, and that the "wait-see" theme came to the fore in the stock markets today before the decision.

While concerns about high inflation remain on the agenda, US Treasury Secretary Janet Yellen, at a press conference in Ireland yesterday, said that she did not think that the country's economy was overheating, that inflation was higher than in recent years, but that it was related to disruptions caused by the new type of coronavirus (Kovid-19) epidemic. expressed.

With these developments, a buying weighted course was followed in the New York stock market yesterday, while the Dow Jones index gained 0.26 percent, the S&P 500 index gained 0.18 percent and the Nasdaq index gained 0.63 percent. Thus, all three indices renewed their closing records. The dollar index is flat today after falling below 94, which analysts described as the critical level, yesterday. The 10-year bond yields of the USA, which were in the 1.55-160 percent band yesterday, dropped below 1.55 percent today. It is noteworthy that the index futures contracts of the USA started today with sellers.

On the European side, after the company's profitability continued to exceed expectations yesterday, a buying-heavy course was followed, while the DAX index in Germany was 0.75 percent, the FTSE 100 index in the UK was 0.71 percent and the CAC 40 index in France was 0.92 percent. won. Euro/dollar parity, which closed at 1.1606 with a rise of 0.4 percent yesterday, is trying to hold just above 1.16 today. Index futures contracts in Europe, on the other hand, follow a selling course.

On the Asian side, the Reserve Bank of Australia kept the policy rate unchanged at 0.10 percent today, while abandoning its target of 0.1 percent yield on 3-year government bonds. On the other hand, the increase in the number of Kovid-19 cases and the risk that the debt problems in the real estate sector in China will spread to other sectors continue to put pressure on the stock markets. The minutes of the meeting of the Bank of Japan (BoJ), which announced its interest rate decision last week, revealed that the members discussed the future of the support programs introduced during the epidemic process. In the minutes, it was stated that the members agreed that the BOJ would continue its ultra-loose monetary policy to support the economy even as other central banks began to reduce incentives in the face of rising inflation, and one of the members expressed the opinion that the supports should be phased out in March 2022, the deadline of the program.

While the Nikkei 225 index in Japan decreased by 0.6 percent and the Shanghai composite index in China decreased by 1.1 percent, the Hang Seng index in Hong Kong increased by 0.5 percent and the Kospi index in South Korea increased by 1.4 percent.

While it is noteworthy that a fluctuating course dominates on the commodity side, the ounce price of gold is hovering at $1,793 today, after gaining 0.6 percent value yesterday. The barrel price of Brent oil, on the other hand, continues its movement in the band of 82-85 dollars before the meeting of the Organization of Petroleum Exporting Countries (OPEC) and the OPEC+ group consisting of some non-OPEC producer countries.

Analysts stated that the data agenda is calm in the country today, and that the manufacturing industry PMI data to be announced in the Euro Zone and Germany will be followed abroad, as well as the European Central Bank officials, technically, 1.550 points in the BIST 100 index are in the resistance position and the 1.480 level is in the support position.

The data to be followed in the markets today are as follows:
11.55 Germany, October manufacturing PMI

12.00 Eurozone, October manufacturing PMI

14.30 Turkey, August foreign currency assets and liabilities of companies outside the financial sector

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