In the US, economic signals, policy makers’ guidance and company financial results remain in the focus of investors.
According to the data released in the country yesterday, housing starts came in above expectations, although it decreased by 0.8 percent to 1 million 420 thousand in March.
While Fed members continue their verbal guidance, St. Louis Fed President James Bullard stated that interest rate hikes should be continued after the latest data pointing out that inflation continues to be stubbornly high. Bullard also opposed the views that the US economy is in recession.
Atlanta Fed President Raphael Bostic said the Fed will likely raise interest rates again to reduce high inflation. Pointing out that the economy is still gaining momentum but inflation is very high, Bostic noted that there is more work to be done in the field of monetary policy.
Analysts stated that the strong signals received in this period when signs of cooling are expected in the economy put pressure on asset prices with the concern that hawkish policies may be kept in practice longer than expected, and that this situation also narrowed the policy area of the Fed.
With these developments, expectations that the Fed will continue to increase interest rates by 25 basis points in pricing in money markets remain strong, while the signals to be received from the Fed’s Beige Book Report, which will be announced today, are expected to have an impact on the expectations.
On the other hand, it is observed that stock-based volatility increased during the balance sheet period concentrated in the USA.
The net profit of Goldman Sachs, one of the country’s largest banks, decreased by 18 percent in the first quarter of this year compared to the same period last year, while the net profit of Bank of America increased by 15 percent in the same period.
The balance sheet of Johnson & Johnson, which produces US-based cosmetics and hygienic products, also showed that the company’s sales increased by 5.6 percent in the first quarter of this year to $24.7 billion. Netflix, which announced its balance sheet after the markets closed, is moving in a downward trend in the futures markets as the revenues and the number of members are below expectations.
Among the companies that will announce their balance sheets today are companies such as Tesla, IBM and Morgan Stanley.
With these developments, the S&P 500 index rose by 0.09 percent in the New York stock market yesterday, while the Dow Jones index decreased by 0.03 percent and the Nasdaq index decreased by 0.04 percent. Index futures contracts in the USA started the new day with a decline.
While European stock markets were in an upward trend yesterday, inflation data to be announced in the region today are expected to increase the volatility in the markets.
While it is considered certain that the European Central Bank (ECB) will increase interest rates by 25 basis points on May 4, in the pricing in money markets, the possibility of a 50 basis point increase in interest rates is expected to become clear after today’s inflation data.
Yesterday, the DAX 40 index rose 0.59 percent in Germany, the FTSE 100 index rose 0.38 percent in the UK, the CAC 40 index rose 0.47 percent in France and the MIB 30 index rose 0.69 percent in Italy. Index futures contracts in Europe started the new day with a mixed course.
It is observed that the weak course in the USA has turned into a sales-weighted course in Asian stock markets today.
According to the macroeconomic data announced in the region, industrial production in Japan increased by 4.6 percent on a monthly basis, while capacity utilization increased by 3.9 percent.
Close to the closing, Nikkei 225 index decreased by 0.3 percent in Japan, Shanghai composite index decreased by 0.1 percent and Hang Seng index decreased by 0.6 percent in Hong Kong, while Kospi index increased by 0.2 percent in South Korea.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course in the domestic market yesterday, finished the day at 5,018.70 points, 0.80 percent below the previous closing.
Dollar/TL is traded at 19.4010 at the opening of the interbank market today, after closing at 19.3871 with a flat course yesterday.
Analysts stated that today the Central Bank of the Republic of Turkey (CBRT) Market Participants Survey and consumer confidence index, inflation in the Euro Zone and the Fed’s Beige Book Report data in the USA will be monitored abroad, technically in the BIST 100 index. He noted that the 5,000 and 4,980 levels are support and the 5,050 and 5,150 points are the resistance.
The data to be followed in the markets today are as follows:
10.00 Türkiye, April Consumer Confidence Index
10.00 Türkiye, April Market Participants Survey
11.00 Euro Zone, current account balance for February
12.00 Euro Zone, CPI for March
21.00 US, Fed’s Beige Book Report