While the global markets followed a positive course as inflationary concerns were replaced by the optimism of strong balance sheets, the intense data agenda will be followed today at home and abroad.
After the US Federal Reserve's (Fed) last meeting minutes included important details about the timing and speed of the reduction in bond purchases expected by investors, while uncertainties regarding monetary policies decreased, it was seen that investors turned their focus from inflationary concerns to strong balance sheets announced.
In the third quarter of the year, Bank of America's net profit increased by 57 percent to $7.7 billion compared to the same period of the previous year, while Citigroup's net profit increased by 48 percent to $4.6 billion. In the same period, Wells Fargo increased its net profit by 59 percent to $5.1 billion, and Morgan Stanley by 37 percent to $3.7 billion.
While positive data were observed on the macroeconomic side yesterday, the number of those who applied for unemployment benefits for the first time in the USA fell below 300 thousand for the first time since the beginning of the new type of coronavirus (Kovid-19) epidemic. Unemployment benefits, announced at the level of 293 thousand, were expected to be 319 thousand. Producer Price Index (PPI) in the country also increased by 0.5 percent on a monthly basis in September, below the market expectations.
On the other hand, while the statements of Fed officials were followed closely yesterday, it was seen that the guidance made focused on the fact that inflationary pressures may remain on the agenda for a while, the way was opened for reducing asset purchases, and more time was needed for interest rate hikes.
With these developments, a buying-heavy trend was observed in the New York stock market yesterday. While the Dow Jones index gained 1.56 percent, the S&P 500 index increased by 1.71 percent and the Nasdaq index increased by 1.73 percent, the highest closings since September 27. After seeing the lowest level of the last 10 days with 93.8 yesterday, the dollar index is at 93.9 levels today. The US 10-year bond yields, on the other hand, hover just above 1.52 percent today, after falling from 1.56 percent yesterday to 1.51 percent. While it is noteworthy that the index futures contracts of the USA have started with buyers, the third quarter balance sheets of the companies will continue to be monitored.
On the European side, yesterday, European Central Bank (ECB) President Christine Lagarde reiterated her view that the increase in inflation in the Eurozone was due to temporary reasons, while energy shares rose by more than 1 percent with the support of rising oil prices. The FTSE 100 index gained 0.92 percent in the UK, the DAX 30 index gained 1.4 percent in Germany, the CAC 40 index gained 1.33 percent in France and the FTSE MIB 30 index gained 1.23 percent in Italy. After seeing the highest level of the last 10 days with 1.1625 yesterday, the euro/dollar parity is at 1.1610 levels today. It is seen that the European index futures contracts have started the new day positively.
Although the Asian stock markets started the day with a rise due to the positive atmosphere taken over from the US stock markets, it is seen that the concerns about the ongoing problems in the Chinese economy limited the earnings and the pricing among the sectors in the country's stock market diverged. On the other hand, Japan's new prime minister, Fumio Kishida, has pledged to steer the country away from this policy, while acknowledging his party's failure to achieve broad-based growth under the Abenomics program.
With these developments, the Nikkei 225 index rose by 1.4 percent in Japan, the Shanghai composite index increased by 0.3 percent in China, and the Kospi index in South Korea rose by 0.9 percent, while the Hang in Hong Kong, which opened for trading today after a two-day holiday, increased by 1.4 percent in Japan. The Seng index is up 0.8 percent.
In the domestic market, the BIST 100 index diverged negatively from the global stock markets yesterday in Borsa Istanbul and closed the day at 1,411.75 points with a decrease of 0.13 percent. Dollar/TL, on the other hand, is at the level of 9.1960 at the opening of the interbank market today, after bringing its historical peak to 9.2039 yesterday.
Analysts noted that there was a positive trend in global markets with the strong balance sheet results from the 4 largest banks of the USA and the clarification of the roadmap for monetary policies.
Stating that the statements from Fed officials will continue to be followed today, analysts said that on the data agenda, domestic market participants survey and short-term external debt statistics, retail sales abroad in the USA, New York Fed manufacturing index and University of Michigan confidence index and foreign currency index in the Euro Area. stated that the balance of trade will be brought to the fore.
Analysts stated that technically, 1,370 points in the BIST 100 index are in the position of support and the level of 1.440 in the resistance position.
The data to be followed in the markets today are as follows:
10.00 Turkey, October Central Bank Market Participants Survey
10.00 Turkey, August short-term external debt statistics
11.00 Turkey, September budget balance
12.00 Euro Zone, foreign trade balance in August
15.30 US, October New York Fed Manufacturing Index
15.30 US, September retail sales
17.00 US, October University of Michigan Consumer Confidence Index
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