Uncertainties regarding the debt limit in the USA are increasing its impact on asset prices day by day.
While the news that the meeting of US President Joe Biden and congress leaders was postponed today came to the fore, it is stated that the reason for the postponement was due to the lack of preparations in the subcommittees.
While the statements on the subject remained in the focus of investors yesterday, International Monetary Fund (IMF) Spokesperson Julie Kozack warned that if the USA defaults, this situation will have very serious repercussions not only for the USA but also for the global economy.
US Treasury Secretary Janet Yellen said the US’ failure to meet its debt obligations could threaten gains over the past few years and spark a global recession.
On the other hand, while the US Federal Reserve (Fed) officials continued their verbal guidance, Minneapolis Fed Chairman Neel Kashkari stated that there is some evidence that high inflation has decreased, but he is still persistent and this means that they should continue their tight monetary policy for a longer period of time.
According to the data released in the country yesterday, the Producer Price Index (PPI) was realized below the expectations with an increase of 0.2 percent monthly and 2.3 percent annually in April.
The number of first-time applications for unemployment benefits in the USA rose to 264 thousand in the week ending May 6, exceeding expectations, and recorded its highest value since October 2021.
While the concerns about the banking crisis in the country continue to affect the risk appetite, the share price of the US regional bank PacWest, headquartered in California, fell close to 23 percent after the bank reported that its deposits decreased by 9.5 percent last week.
The announcement that a meeting was held between the USA and China yesterday highlighted the expectation that relations could normalize.
A senior US official is online regarding the meeting of White House National Security Adviser Jake Sullivan in Vienna, Austria, with China’s most senior diplomat, the Director of the Central Foreign Relations Commission Office of the Communist Party of China (CCP), Vang Yi. informed the journalists at the meeting.
Noting that the parties held talks that lasted more than 8 hours for two days, the official said that Sullivan emphasized that the US wants to conduct relations with China “on the basis of competition, not conflict”.
While the aforementioned developments moved to the third day in the bond markets, commodity prices are moving in a downward trend.
Accordingly, after the ounce price of gold depreciated by 0.7 percent yesterday, it found buyers at $2,012, 0.2 percent below the previous close, on the new day, while the barrel price of Brent oil is currently at $74.5 with a decrease of 1.1 percent.
While a buying-heavy trend was prominent in the bond markets yesterday, the US 10-year bond yield decreased by about 7 basis points to 3.45 percent.
Yesterday, the S&P 500 index in the New York stock exchange decreased by 0.17 percent and the Dow Jones index decreased by 0.66 percent, while the Nasdaq index increased by 0.18 percent. Index futures contracts in the USA started the new day with rising.
While the European stock markets followed a mixed course yesterday, the Bank of England (BoE) increased the policy rate by 25 basis points to 4.5 percent, in line with the expectations.
With the decision of the BoE, which has increased interest rates 12 times in a row, the interest rate in the country has reached its highest level since October 2008.
BoE Chairman Andrew Bailey, in his statements after the meeting, stated that they no longer expect a recession in the country and that a moderate growth will be seen, and that interest rate hikes may continue if conditions require.
While DAX 40 index decreased by 0.39 percent in Germany, FTSE 100 index decreased by 0.14 percent in Germany and MIB 30 index decreased by 0.61 in Italy, CAC 40 index increased by 0.28 percent in France. Index futures contracts in Europe started the new day with rising.
While the mixed course in the New York stock market is moving to Asia in the new day, the concerns about the economic activity in the region continue to be effective on the asset prices.
Analysts, emphasizing that the US-China talks are closely followed, stated that the news flow about the talks may increase the volatility in the markets.
While the Nikkei 225 index gained 0.9 percent in Japan near the closing, the Shanghai composite index in China decreased by 0.7 percent, the Hang Seng index in Hong Kong by 0.4 percent and the Kospi index in South Korea decreased by 0.5 percent.
BIST 100 index in Borsa Istanbul, which followed a buying-heavy course in the domestic market yesterday, finished the day at 4.848.01 points, 7.87 percent above the previous closing.
According to the data released yesterday, the balance of payments had a deficit of 4 billion 484 million dollars in March, while a surplus of 1 billion 372 million dollars was formed in the current account, excluding gold and energy.
Dollar/TL is traded at 19.5780 at the opening of the interbank market today, after closing at 19.5454 with a flat course yesterday.
Analysts stated that today, retail sales volume in the country, growth in the UK, industrial production and foreign trade balance abroad, and the University of Michigan confidence index data in the USA will be followed. noted that it is in position.