Stock markets in the USA and many European countries will be closed today due to the Christmas holiday. In the limited number of open exchanges, it is expected that the data agenda is weak, a low-volume and fluctuating course and internal dynamics are expected to come to the fore.
While the developments regarding the new type of coronavirus (Kovid-19) epidemic were followed in the pricing of the stock markets before the Christmas holiday, it was determined in a study conducted in England that the risk of hospital treatment for people infected with the Omicron variant is 50-70% less than other variants. On the other hand, yesterday the pharmaceutical company AstraZeneca announced that it is working with Oxford University to produce a vaccine against the Omicron variant.
Although there has been an acceleration in the number of cases worldwide, the expectations that the Omicron variant may not have as severe effects as feared supported the stock markets.
On the macroeconomic data side, the number of people who applied for unemployment benefits for the first time in the USA yesterday was 205 thousand, in line with expectations. In the country, personal consumption expenditures, which the US Federal Reserve (Fed) considers as an indicator of inflation, recorded the highest increase since July 1982 with 5.7 percent on an annual basis in November, while the University of Michigan Consumer Confidence Index for December decreased to 70 from 70.4. Revised to 6.
With these developments, the Dow Jones index gained 0.55 percent, the S&P 500 index by 0.62 percent and the Nasdaq index by 0.85 percent in the New York stock market yesterday. The dollar index decreased to the 96 limit yesterday by carrying its decline to the third day. The US 10-year bond yield, on the other hand, rose from 1.45% yesterday and tested 1.50%.
On the European side, the price of futures contracts, which exceeded 180 euros per megawatt-hour, fell to 136 euros yesterday due to the reduced gas supply from Russia and increased consumption due to the cold weather. While the increase in the amount of LNG supplied by the USA to Europe was effective in the decrease in prices, it was reported that nearly 20 LNG tankers would enter European ports in the coming days.
In addition to these developments, a buying-heavy trend was observed in the European stock markets before the Christmas holiday, as investors' concerns about the Omicron variant eased. The FTSE 100 index rose 0.43 percent in the UK, the DAX 30 index rose 1.04 percent in Germany and the CAC 40 index rose 0.77 percent in France. Although Euro/dollar parity regressed to 1.1290 yesterday, it closed the day at 1.1330 levels.
While transactions in many countries' stock exchanges in Asia were carried out for half a day, it was observed that the indices that started the day positive turned negative near the closing. In Japan, the Nikkei 225 index decreased by 0.1 percent, the Shanghai composite index in China decreased by 0.6 percent, while the Hang Seng index in Hong Kong increased by 0.1 percent.
At the Financial Stability Committee meeting chaired by the Minister of Treasury and Finance Nureddin Nebati, it was agreed that predictable and decisive policy steps should be taken with a holistic approach, centered on transparency for ensuring financial stability and sustainable growth within the framework of the Turkish Economy Model.
Answering questions about the agenda on NTV broadcast last night, Minister Nebati said that with the Turkish Economy Model, a very rapid change will be seen before the summer, and everything turns positive.
Nebati, "How many depositors have opened a currency-protected Turkish lira deposit account and converted their account from foreign currency to Turkish lira?" "This morning, it was 10 billion liras. In the afternoon, it goes exponentially, the data comes with a delay." he replied.
Analysts stated that the risk appetite remained high before the Christmas holidays as the concerns about the Omicron variant in the Kovid-19 epidemic eased in the global stock markets, and that volatility continued in the domestic market during the repositioning of investors and the stabilization of the exchange rate.
Stating that a volatile course with low trading volume is expected to come to the fore in the stock markets, which are open due to the Christmas holidays that started in many countries today, analysts stated that technically, the level of 1.890 in the BIST 100 index is in the position of resistance and the level of support of 1.790 points.
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