Banking concerns, which could not calm down in the USA, continue to have an impact on asset prices.
While the concern that the credit expansion, which is expected to decrease with the banking sector’s troubles, could put the country into recession, gained strength, the expansion of emergency credit channels came to the fore despite the possibility of the crisis expanding. Minneapolis Fed Chairman Neel Kashkari said at the weekend that the banking crisis increased the risk of a recession in the country.
Although the US Federal Reserve (Fed) Chairman Jerome Powell and some members stated that the issue of interest rate cuts is not on the table this year, the pricing that these developments will stop the interest rate hikes supports the risk appetite.
While money markets continue to price the Fed’s interest rate cut by 100 basis points until the end of the year, it is expected that interest rate cuts will start as of June.
Analysts noted that the news flow about the banking crisis will be in the focus of investors throughout the week, and said that the speeches of Fed members are expected to have an impact on the direction of the markets.
On the other hand, Russian President Vladimir Putin, in a statement to a television channel at the weekend, stated that they will place tactical nuclear weapons in Belarus, “We will do this without violating our international obligations on non-proliferation.” said.
NATO and the European Union (EU) said they found Russia’s decision to plant tactical nuclear weapons in Belarus “irresponsible”.
While the aforementioned concerns increased the demand for bonds, commodity prices started the week with mixed movements.
The barrel price of Brent oil and the ounce of gold fell by 0.7 percent and 0.3 percent, respectively, while the pound of copper rose 0.4 percent.
On Friday, the S&P 500 index rose 0.56 percent, the Dow Jones index 0.41 percent and the Nasdaq index 0.31 percent in the New York stock exchange. Index futures contracts in the USA started the new week with a rise.
On the European side, the decrease in risks to banks, albeit limited, supports the risk appetite, while the depreciation of Deutsche Bank shares continues, albeit at a slower pace.
Deutsche Bank shares, which had fallen by nearly 30 percent since the start of the banking crisis, closed the day with a decrease of 3.9 percent at 8.7 euros, making up for most of the losses near the closing, although an interim value loss exceeded 11 percent on Friday.
While the European Central Bank (ECB) continues to emphasize that it will do its best to maintain financial stability, German Chancellor Olaf Scholz said Deutsche Bank is a very profitable bank after the sharp depreciation of its shares and there is no need to worry.
With these developments, the DAX 40 index in Germany fell by 1.66 percent, the FTSE 100 index in the UK by 1.26%, the MIB 30 index in Italy by 2.23 percent and the CAC 40 index in France by 1.74 percent on Friday. Index futures contracts in Europe started the new week with an upward trend.
While a sales-dominated trend stands out in Asian stock markets, concerns about the Chinese economy are effective in this course.
The profitability of some companies that announced their balance sheets in the country was below expectations and the 22.9 percent decrease in industrial profitability since the beginning of the year caused the risk appetite in the region to lose strength.
In Japan, the leading indicators index decreased to 96.6.
Close to the closing, Nikkei 225 index decreased by 0.2 percent in Japan, Shanghai composite index decreased by 0.6 percent in China, Kospi index decreased by 0.2 percent in South Korea and Hang Seng index decreased by 1 percent in Hong Kong.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course on Friday, closed the day at 5,031.98 points, 0.59 percent below the previous close.
Dollar/TRY is trading at 19.0860 at the opening of the interbank market today, after closing at 19.0701 with an increase of 0.2 percent on Friday.
Analysts stated that today the capacity utilization rate and real sector confidence index in the country, Ifo business index in Germany and Dallas Fed manufacturing industry index in the USA will be followed today, technically, the levels of 5.100 and 5.200 in the BIST 100 index are resistance, 5.000. He noted that the score is in the support position.