Developments in the US economy continue to be influential on asset prices.
According to the data released on Friday, non-farm employment in the USA increased by 253 thousand people in April, exceeding expectations, while the unemployment rate decreased from 3.5 percent to 3.4 percent. While the data resolved the recession concerns in the country, the expectations that the US Federal Reserve (Fed) would keep the policy rate at this level for a while remained strong.
With the decrease in the concerns about the banking sector, a buying-heavy trend was followed in the New York stock market led by Apple shares on Friday, while the inflation data to be announced in the USA this week placed the focus of the investors.
Analysts noted that the Fed’s “falconry” steps taken within the scope of the fight against inflation are priced in as of June, but Wednesday’s data is expected to have an impact on these expectations.
Noting that the inflation in the country is still well above the levels targeted by the Fed, analysts said that it is possible to increase volatility in the markets with the inflation data.
On the other hand, while discussions on the debt limit impasse in the USA continue, it was reported that the White House evaluated the short-term increase in the debt limit.
Recalling that the balance sheet calendar continues in the country, analysts noted that this week, the balance sheets of companies such as Merck, Toyota and Airbnb are expected to have an impact on the market.
While commodity prices started the week in an upward trend, the barrel price of Brent oil, which decreased by 6.2 percent last week, started the new week at $ 75.6 with an increase of 0.5 percent, and the price of ounce of gold at $ 2,022 with a 0.3 percent gain.
With these developments, the S&P 500 index rose 1.85 percent, the Dow Jones index rose 1.65 percent and the Nasdaq index rose 2.25 percent in the New York stock market. Index futures contracts in the USA started the new week with a decline.
Equity markets in Europe followed a buying-heavy course on Friday, while the Bank of England’s (BoE) interest rate decision and intense data agenda are expected to have an impact on the direction of the markets throughout the week.
While it is considered certain that the BoE will increase interest rates by 25 basis points in pricing in money markets, the policy text and the signals made by BoE Chairman Andrew Bailey are expected to have an impact on asset prices.
Analysts stated that the European Central Bank (ECB) increased the three main policy rates by 25 basis points last week and emphasized that the importance of the macroeconomic data to be announced increased even more when the bank stated that it will continue to make its decisions based on data.
On Friday, the DAX 40 index rose 1.44 percent in Germany, the FTSE 100 index rose 0.98 percent in the UK, the CAC 40 index rose 1.26 percent in France and the MIB 30 index rose 2.54 percent in Italy. Index futures contracts in Europe started the new week with a rise. Markets in the UK will be closed today for a holiday.
While a buying-heavy course stands out in Asia, excluding Japan, the recession concerns in the USA support the stock markets in Asia.
While banks led the decline in Japan, the services sector Purchasing Managers Index (PMI) rose to 55.4 and the composite PMI to 52.9, according to data released in the country today.
While the Nikkei 225 index depreciated by 0.6 percent in Japan near the closing, the Shanghai composite index increased by 1.7 percent in China, the Hang Seng index increased by 0.7 percent in Hong Kong and the Kospi index increased by 0.6 percent in South Korea.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course on Friday, finished the day at 4,400.76 points, 1.86 percent below the previous close.
Dollar/TL is traded at 19.5010 level at the opening of the interbank market today, after closing at 19.5033 with a flat course on Friday.
Analysts stated that today the Treasury cash balance will be followed in the domestic market and the wholesale stocks in the USA abroad will be followed, and noted that technically, 4.360 and 4.300 levels in the BIST 100 index are in the support position and 4.500 points in the resistance position.