The strong course of economic activity throughout the world raises questions about when the “hawk” steps taken within the scope of the fight against inflation will come to an end.
After the non-farm employment data announced on Friday last week, which was in line with the expectations, with 236,000, market expectations regarding the decisions to be taken by the US Federal Reserve (Fed) in the meeting in May also changed significantly.
While it is predicted in the money markets that the Fed will increase interest rates by 25 basis points with a 64 percent probability next month, the inflation data to be announced on Wednesday is expected to have an impact on the expectations.
The strengthening of the expectations that the Fed may continue its “hawk” policies suppressed precious metal prices, while the price of gold started the week at $1,992 with a decrease of 0.8 percent.
While the dollar index carried the upward trend to 102.2 for the fourth day in a row, a cautious course is observed in the bond markets.
While there were no transactions on the New York stock market on Friday due to the holiday, index futures contracts in the USA started the new week with a mixed movement.
European stock markets will also be closed today for a holiday.
Asia
While it is seen that the risk appetite is low on the Asian side, China’s military exercise near Taiwan strengthens the risk perception.
In Japan, Ueda Kazuo will take office today as Governor of the Bank of Japan (BoJ). The signals that Ueda will give about the yield curve are being followed closely.
According to the data released in the region, the current account surplus in Japan was 2.2 trillion yen in February, while the consumer confidence index rose from 31.1 to 33.9.
While the Nikkei 225 index in Japan increased by 0.4 percent and the Kospi index in South Korea by 0.9 percent, Shanghai composite index in China decreased by 0.2 percent. Markets in Hong Kong are closed for a holiday.
Domestic markets
BIST 100 index in Borsa Istanbul, which followed a buying-heavy course on Friday, finished the day at 4,924.64 points, 0.24 percent above the previous closing.
Dollar/TL is traded at 19.2520 at the opening of the interbank market today, after closing at 19.2522 with a flat course on Friday.
Analysts stated that today, the balance of payments and labor force statistics in the country and the wholesale stocks in the USA abroad will be followed, noting that, technically, the BIST 100 index 4,900 and 4,850 levels are support, 5,000 and 5,050 points are in the resistance position.
