The positive news flow regarding the debt limit crisis in the USA, which has been the main risk factor for a while, supports asset prices.
President of the United States, Joe Biden, stated that they had a productive meeting on the debt limit at the press conference he held at the White House after his meeting with the leaders of Congress yesterday, and stated that he was confident that they would reach an agreement before the USA defaulted.
U.S. House of Representatives Speaker Kevin McCarthy also stated that a debt limit agreement could be reached by Sunday.
While these developments caused the risk appetite to strengthen in the markets, the rise in the shares of regional banks after the news about the increase in deposits of Western Alliance Bancorp also played a role in the positive trend in the markets.
On the other hand, according to the macroeconomic data released in the country yesterday, housing starts in the USA increased by 2.2 percent in April to 1 million 401 thousand, exceeding expectations.
While the continued strong economic activity in the country increased the uncertainties regarding the decisions to be taken by the US Federal Reserve (Fed) at the next month’s meeting, the expectations that the Bank could raise interest rates by 25 basis points in June rose to 28 percent.
Concerns that the Fed may continue to stay “hawk” in June, suppressed gold, while the ounce price of gold carried the downward trend for the third day to $1,979 yesterday.
Analysts also stated that the financial results of retail giant Wallmart are expected to be announced in the USA today, adding that the company’s projections for the future may increase the volatility in the markets.
Yesterday, the S&P 500 index fell 1.19 percent, the Dow Jones index fell 1.24 percent and the Nasdaq index fell 1.28 percent in the New York stock market. Index futures contracts in the USA started the new day with a mixed course.
Europe
While a mixed course emerged in Europe yesterday, the fact that the inflation in the region is still well above the target level continues to erode the risk appetite.
According to the data released yesterday, the Consumer Price Index (CPI) in the Euro Zone increased by 7 percent, in line with the expectations.
It is considered certain that the European Central Bank (ECB) will increase interest rates by at least 50 basis points in the coming period in terms of pricing in money markets.
While the DAX 40 index gained 0.34 percent in Germany yesterday, the FTSE 100 index decreased by 0.36 percent in the UK, the CAC 40 index decreased by 0.09 percent in France and the MIB 30 index decreased by 0.01 in Italy. Index futures contracts in Europe started the new day with rising.
Asia
While the positive trend in the USA is carried over to Asia in the new day, Japanese stock markets are hovering close to their all-time highs.
Chinese internet giant Tencent Holding, which announced its financial results in the region yesterday, announced a profit above expectations, while Alibaba is expected to announce its financial results today.
Analysts reminded that Alibaba shares were trading at a premium of 3 percent before the balance sheet, and that the increasing revenues of both companies indicated that the economic activity in China was strong.
On the other hand, according to the data announced in Japan today, exports increased by 2.6 percent and imports decreased by 2.3 percent, failing to meet the expectations.
Near the closing, the Nikkei 225 index rose 1.7 percent in Japan, the Shanghai composite index rose 0.3 percent in China, the Kospi index in South Korea rose 0.7 percent and the Hang Seng index in Hong Kong rose 0.7 percent.
Domestic markets
BIST 100 index in Borsa Istanbul, which followed a buying-heavy course in the domestic market yesterday, finished the day at 4,661.68 points, 1.57 percent above the previous closing.
Dollar/TL is trading at 19.7770 at the opening of the interbank market today, after closing at 19.7585 with an increase of 0.2 percent yesterday.
Analysts stated that today, the Central Bank of the Republic of Turkey (CBRT) Market Participants Survey and Financial Stability Report will be followed in Turkey, weekly unemployment benefits in the USA, Philadelphia Fed job outlook index and second-hand house sales will be followed, from a technical point of view, to the BIST 100. He noted that 4,750 and 4,900 levels in the index are in the resistance position and 4,600 points are in the support position.
