Verbal guidance by monetary policy makers around the world, data on economic activity and geopolitical developments continue to affect asset prices.
While the US Federal Reserve (Fed) officials pointed out the importance of the inflation data to be announced in the USA today for the magnitude of the interest rate hike in March, the Consumer Price Index (CPI) is expected to rise to its highest level since 1982 with 7.2 percent.
Cleveland Fed President Loretta Mester, on the other hand, stated in her statement yesterday that it would be appropriate for the Fed to increase interest rates at a higher rate than in 2015, and that the speed and size of the rate hikes will be decided according to the course of the economy.
Atlanta Fed President Raphael Bostic also mentioned that all options are on the table and stated that today's inflation data will play an important role in the size of the interest rate hike.
Analysts stated that the risk appetite, which was high on a global basis yesterday, decreased worldwide before the inflation data in the USA on the new day, and warned that the possible unanticipated realizations in the said data may increase the volatility.
With the high demand for the auctions held before the inflation data, the 10-year bond yield of the USA, albeit in a limited way, showed a downward trend and stabilized at the level of 1.93 percent.
Yesterday, the S&P 500 index gained 1.45 percent, the Nasdaq index gained 2.08 percent and the Dow Jones index gained 0.86 percent in the New York stock market. In the US, index futures contracts are mixed in the new day.
While the hawkish statements from the members of the European Central Bank (ECB) continued in Europe, the upward trend in the stock markets, parallel to the New York stock market, continued yesterday.
ECB Committee member Isabel Schnabel, in her verbal guidance yesterday, said that if the rise in inflation expectations continues, an interest rate hike may be necessary.
Another Committee member, Joachim Nagel, noted that it is possible to increase interest rates at the end of the year and said, "In the central banking book, we have reached the point where interest rates are increased."
Euro/dollar parity is currently finding buyers at 1.1425, just above the previous close.
Yesterday, DAX 30 index gained 1.57 percent in Germany, FTSE 100 index gained 1.01% in England, CAC 40 index gained 1.46 percent in France and FTSE MIB 30 index gained 2.72 percent in Italy. European indices are following a mixed course in futures today.
In Asia, the increased tension on the grounds of non-compliance with the trade agreement between China and the USA and the acceleration of the spread of new types of coronavirus (Kovid-19) cases, especially in Hong Kong, draw attention as the main risk factor.
Today, the Reserve Bank of India left the policy rate unchanged at 4 percent, in line with expectations. According to the macroeconomic data announced in the region, the Producer Price Index in Japan increased by 8.6 percent annually, exceeding the expectations.
Close to the closing, Nikkei 225 index in Japan gained 0.31 percent and Kospi index in South Korea gained 0.14 percent, while Shanghai composite index in China lost 0.28 percent and Hang Seng index in Hong Kong lost 0.38 percent. .
Domestically, the BIST 100 index continued its upward trend and closed the day at 2,042.85 points with 1.78 percent gain.
Dollar/TL, on the other hand, is trading at 13.57 at the opening of the interbank market today, after closing at 13.5415 with a decrease of 0.2 percent yesterday.
Due to the announced company balance sheets, share and sector based divergences continue.
Analysts stated that today, in addition to the inflation data in the USA, the course of energy prices and developments related to Ukraine may have an impact on asset prices, and said that technically, 2.055 and 2.100 levels in the BIST 100 index are in the position of resistance, and 1.990 and 1.930 points are in the support position.
The data to be followed in the markets today are as follows:
10.00 Turkey, unemployment rate in December
14.30 Turkey, weekly money and bank statistics
16.30 US, weekly jobless claims
16.30 US, January CPI
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