While the concerns in global stock markets continue that the increasing inflation pressures in the USA may force the US Federal Reserve (Fed) to a tight monetary policy before expected, today's inflation data in the UK and the Euro Zone and the speeches of Fed officials are in the focus of investors.
While US President Joe Biden and Chinese President Xi Jinping met online yesterday and after the meeting, Biden's positive statements alleviated the concerns about the tension between the US and China, increasing inflation on a global scale is causing pressure on the markets.
Retail sales announced yesterday in the US increased by 1.7 percent in October compared to the previous month, the highest increase since March. After the better-than-expected profitability of retail chains such as Walmart and Home Depot in the USA, a positive trend was observed in the New York stock market.
Concerns that the strong course of consumer expenditures might support inflation led to an increase in sales in bond markets, and the US 10-year bond yield continued its upward trend and reached 1.65%.
With the increasing global dollar demand, the dollar index carried its upward trend for the third day in a row, reaching the highest level of the last 16 months with 96.2.
San Francisco Fed President Mary Daly, one of the Fed officials, whose statements were followed yesterday, stated that the economy is more positive than a year ago, and that it is still too early to take a step on an interest rate hike.
On the other hand, US Treasury Secretary Janet Yellen stated that she predicts that the US will reach the debt limit on December 15, while Biden announced that he will make his decision for the Fed Presidency within 4 days.
Yesterday, the S&P 500 index rose 0.39 percent, the Nasdaq index rose 0.76 percent and the Dow Jones index rose 0.15 percent in the New York stock market. Today, it is seen that a selling trend, albeit limited, is dominant in index futures contracts.
As the political disagreements on the European side continue to affect the markets, yesterday, Germany's energy market regulator (Bundesnetzagentur-BNetzA) announced that it has temporarily suspended the licensing process of the Nord Stream 2 Natural Gas Pipeline from Russia to Europe.
In the statement made by the institution, it was stated that Nord Stream 2 AG, the executive company of the project, must establish a company according to German laws in order to fulfill more prerequisites for obtaining the operating license of the line. After the decision, the natural gas futures contract traded in Europe increased by about 16 percent to 94.6 euros.
While there is no concrete development in the ongoing migrant crisis on the border of Poland and Belarus, concerns about the new type of coronavirus (Kovid-19) epidemic in the region continue to increase.
Yesterday, DAX 30 index gained 0.61 percent in Germany, FTSE 100 index lost 0.34 percent in England and FTSE MIB 30 index lost 0.23 percent in Italy. In France, the CAC 40 index remained flat.
The euro/dollar parity, on the other hand, decreased by 0.1 percent to 1.1264, the lowest level it has seen since July 10, 2020.
On the Asian side, the increased cases in the Kovid-19 epidemic bring about the measures, which erodes the risk appetite. The bilateral meeting between the presidents of China and the USA, on the other hand, was priced positively in the stock markets.
According to the data released in Japan today, the foreign trade deficit was realized as 67.4 billion yen in October, below the expectations, while the core machinery orders increased by 12.5 percent year on year, but failed to meet the market projections.
With these developments, the Nikkei 225 index depreciated by 0.40 percent in Japan, the Kospi index in South Korea by 1.10 percent and the Hang Seng index in Hong Kong by 0.70 percent, while the Shanghai composite index in China decreased by 0.30 percent. rose.
Domestically, after the BIST 100 index reached its highest level record of 1,725.02 points in Borsa Istanbul yesterday, it started to decline due to the increasing selling pressure and closed the day at 1,685.60 points with a decrease of 0.99 compared to the previous close.
Dollar/TL reached its peak with 10,4505 at the opening of the interbank market today, after completing the day at 10,3166 with an increase of 2.51% in the international market yesterday.
Stating that the verbal guidance of the Fed officials and the bond markets with increased volatility are also in the focus of the investors, the analysts stated that, technically, 1,640 points in the BIST 100 index is in the position of support, and the level of 1.725 is in the position of resistance.
The data to be followed in the markets today are as follows:
10.00 Turkey, September short-term external debt statistics
10.00 UK, October CPI
13.00 Euro Zone, CPI for October
16.30 US, October building permits
16.30 US, October housing starts
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