Concerns about economic activity and uncertainties about monetary policy around the world continue to have an impact on asset prices.
While questions about the US Federal Reserve’s (Fed) monetary policy, as well as the ongoing debt limit crisis in the US, continue to be included in the pricing, the statements of Fed officials throughout the week, especially Fed Chairman Jerome Powell’s verbal guidance on Friday, will focus on investors. settled down.
Analysts stated that despite the slowdown in the labor market and inflation in the country, it was not at the desired level, adding that this situation fed the uncertainties regarding the Fed’s future monetary policies.
According to the data released last week, the University of Michigan consumer confidence index decreased to 57.7 with a monthly decrease of 5.8 points in May, the lowest value in the last 6 months, while consumers’ long-term inflation expectation was 3.2 percent, the highest since 2011. recorded high.
While it is predicted that the Bank will most likely keep the policy rate constant in the pricing in the money markets, the expectations that it will increase the interest rate by 25 basis points are at the level of 17 percent.
Analysts also noted that the developments regarding the debt limit crisis in the country were also closely followed, and reminded that the US Congress Budget Office (CBO) warned that “if the debt limit is not increased, the government may not be able to pay its debts in the first two weeks of June”.
Commodity prices started the new week with a mixed course ahead of the intense data agenda, while the ounce price of gold is trading at $2,018 with an increase of 0.4 percent, and the price of Brent oil at $ 73.8 per barrel with a decrease of 0.3 percent.
On Friday, the S&P 500 index fell 0.16 percent, the Dow Jones index fell 0.03 percent and the Nasdaq index fell 0.36 percent in the New York stock market. Index futures contracts in the USA started the new week with a limited rise.
Europe
While the concerns about the economic activity in Europe continue to increase, the fact that the inflation is still well above the desired level makes pricing for the future monetary policy difficult.
In the macroeconomic data to be announced in the region this week, the signals regarding the state of the economy are expected to increase the volatility in the markets. European Central Bank (ECB) President Christine Lagarde’s statements on Friday are also in the focus of investors.
On Friday, the DAX 40 index rose 0.50 percent in Germany, the FTSE 100 index rose 0.31 percent in the UK, the MIB 30 index in Italy rose 0.92 and the CAC 40 index in France rose 0.45 percent. Index futures contracts in Europe started the new week with a rise.
Asia
Although the stock markets in Asia started the week with a mixed movement, the buying trend near the closing stood out, while the investors in China seem to be acting cautiously before the macroeconomic data to be announced tomorrow.
Analysts stated that the concerns about the economic activity in the country are increasing, and that the signals from the data to be announced tomorrow are expected to have an impact on the direction of the markets.
On the other hand, according to the data released in Japan today, the Producer Price Index (PPI) increased by 5.8 percent, well below the expectations.
Close to the closing, Nikkei 225 index gained 0.7 percent in Japan, Shanghai composite index gained 0.4 percent in China and Hang Seng index gained 1.4 percent in Hong Kong, while Kospi index decreased by 0.1 percent in South Korea.
Domestic markets
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course on Friday, finished the day at 4,795.61 points, 1.08 percent below the previous closing.
While the official results have not yet emerged in the Presidential and 28th Term Parliamentary Elections held yesterday, the vote counting continues.
Dollar/TL is trading at 19.6220 at the opening of the interbank market today, after closing at 19,5783 with an increase of 0.2 percent on Friday.
Analysts noted that today, industrial production in the Euro Area and the New York Fed manufacturing index in the USA will be followed, and technically, the BIST 100 index 4,900 and 5,000 levels are resistance and 4,750 and 4,600 points are support.
The data to be followed in the markets today are as follows:
12.00 Euro Zone, industrial production in March
15.30 US, May New York Fed manufacturing index
