In the US, the Producer Price Index (PPI) increased by 0.5 percent month on month and 11 percent year on year in April. The PPI data, which increased more than expected after the Consumer Price Index (CPI) in the country, also indicated that upward pressures on prices would continue.
While the new type of coronavirus (Kovid19) epidemic in China and geopolitical risks in Europe remained at the center of the agenda, the global data announced that inflationary pressures would continue increased the uncertainties regarding the monetary policies of the central banks.
US Federal Reserve (Fed) Chairman Jerome Powell, in his statement yesterday, reiterated that it would be appropriate to increase interest rates by 50 basis points in the next two meetings, "It would probably be better for us to raise interest rates a little earlier." said. San Francisco Fed President Mary Daly said she would like to see financial conditions tighten further, supporting a half-point increase in interest rates at the next two meetings.
Increasing question marks about the bank's direction of monetary policy tightening and the course of inflation caused investors to continue their search for a safe haven and the demand for the dollar remained strong. After rising to 104.9 yesterday, the dollar index continues its movement at 104.6, the highest level in nearly 20 years. The US 10-year bond yield was stabilized at 2.89% after falling to the lowest level in two weeks with 2.82% yesterday.
With these developments, it was seen that the volatility in the New York stock market was high yesterday and the indices, which started the day with a decline, compensated for some of their losses with reaction purchases. While the Dow Jones index and the S&P 500 index lost 0.33 percent and 0.13 percent, the Nasdaq index increased by 0.06 percent near the closing.
On the European side, there was a rapid increase in energy prices with Russia's announcement of sanctions on Western countries yesterday, while natural gas contracts for July futures were stabilized at the level of 107 euros after seeing 117 euros. With the effect of the rise in the dollar, the losses in the euro and sterling continued. The euro/dollar parity hit its lowest level since January 2017 with 1.0354, and the sterling/dollar parity with 1.2166 since May 2020. DAX 30 index lost 0.64 percent in Germany, CAC 40 index lost 1.01 percent in France and FTSE 100 index lost 1.56 percent in England.
On the Asian side, although the continuation of the Kovid-19 epidemic measures in China remains on the agenda as a pressure factor, the new day started positively in the stock markets. The rise in indices was driven by the strengthening of expectations that the People's Bank of China could continue to cut interest rates. Close to the closing, Shanghai composite index rose 0.5 percent in China, Nikkei 225 index in Japan rose 2.6 percent, and Hang Seng index in Hong Kong rose 2 percent.
In Borsa Istanbul, which followed a selling course yesterday in line with the negative course in the global markets, the BIST 100 index finished the day at 2,390.98 points with a 2.57 percent depreciation. On the other hand, Dollar / TL is traded at 15,4250 at the opening of the interbank market today, after closing at 15,3808 with an increase of 0.4 percent compared to the previous closing level.
Analysts said that while concerns about global economic growth and inflationary pressures continue, the confidence of central banks in monetary policies is also questioned, and that this situation causes the tendency of investors to flee from risky assets, and that volatility may remain on the agenda for a while.
Stating that the statements of Fed and European Central Bank (ECB) officials will be followed today, analysts stated that industrial production in the country will come to the fore on the data agenda, while industrial production in the Euro Zone will come to the fore with the University of Michigan consumer confidence index in the USA.
Analysts stated that technically, the BIST 100 index is at the support level of 2.350 and the resistance at 2.470 points.
Economists participating in AA Finans' survey expect the calendar adjusted industrial production index to increase by 9.4 percent annually in March. Economists predict that the unadjusted industrial production index will increase by 8.1 percent on an annual basis in March.
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