Global markets start the week cautiously
ISTANBUL (AA) – Global markets started the new week cautiously with concerns about the debt limit crisis in the USA.
The debt crisis in the US continues to have an impact on asset prices.
Even though the perception of risk got stronger with the deadlocked negotiations on Friday last week, the news flow that US President Joe Biden and US House of Representatives Speaker Kevin McCarthy agreed to meet again for today is eroding the risk perception.
Analysts reminded that the ongoing uncertainties on the subject continue to put pressure on relatively risky assets, and said that the possibility that the USA may not be able to pay its debts as of June 1 makes pricing difficult in the markets.
On the other hand, the US Federal Reserve (Fed) Chairman Jerome Powell’s signals on Friday that the Fed might stop the rate hikes limited the selling pressure in the stock markets.
Powell stated that developments in the banking sector contributed to the tightening of credit conditions, and that interest rates may not need to rise as much as they normally should.
Describing the Fed’s current policy as “restrictive”, Powell said they face uncertainty about the lagged effects of the tightening so far and the extent of the credit tightening stemming from recent banking stresses.
Powell reiterated that the bank’s future decisions will be based on data and the evolving outlook.
While these developments caused commodity prices to decline, the barrel price of Brent oil decreased by 1.3 percent to $74.8 on the first trading day of the new week, the pound of copper fell by 1.2 percent to $ 3.68 and the ounce price of gold fell by 0.3 percent to 1.973. down to dollars.
On Friday, the S&P 500 index fell 0.14 percent, the Dow Jones index fell 0.33 percent and the Nasdaq index fell 0.24 percent in the New York stock market. Index futures contracts in the USA started the new week with a mixed movement.
While a buying-heavy trend was prominent in Europe on Friday, European Central Bank (ECB) President Christine Lagarde stated that it is not possible to stop interest rate hikes with the data in their hands.
Noting that the inflation outlook has been high for a long time, Lagarde stated that they have made significant progress in monetary policy steps, however.
On Friday, the DAX 40 index in Germany rose 0.69 percent, the FTSE 100 index in the UK increased by 0.19 percent, the CAC 40 index in France increased by 0.61 percent and the MIB 30 index in Italy increased by 1.05 percent. Index futures contracts in Europe started the new week with a rise.
Even though Asian stock markets started the week on an upward trend after US President Joe Biden stated that relations with China could return to normal soon, uncertainties regarding the US debt crisis are eroding the risk perception.
While the People’s Bank of China (PBoC) kept the 1-year and 5-year loan interest rates unchanged at 3.60 percent and 4.30 percent, respectively, core machinery orders in Japan fell by 3.9 percent month on month, failing to meet expectations.
While the Nikkei 225 index in Japan increased by 0.8 percent, the Kospi index in South Korea by 0.7 percent and the Hang Seng index in Hong Kong by 1 percent, the Shanghai composite index in China decreased by 0.1 percent.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course on Thursday in the country, closed the day at 4,501.73 points, 3.43 percent below the previous closing.
Dollar/TL is trading at 19.8250 at the opening of the interbank market today, after closing at 19.8123 with an increase of 0.1 percent on Friday.
Analysts stated that today, together with the consumer confidence index in the country and the consumer confidence index abroad in the Euro Area, the news flow regarding the US debt crisis will be followed, technically, the BIST 100 index 4.500 and 4.400 levels are support and 4.600 points are in the resistance position. recorded.