While US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy continued their discussions on the debt limit crisis, the announcement that the two agreed that defaulting was not an option eased the selling pressure in the markets.
Analysts pointed out that if the USA defaults on its debts, there may be a delay of approximately one month in the payment schedule, and that this situation suppresses asset prices with the concern that it may adversely affect the economic activity in the country.
On the other hand, US Federal Reserve (Fed) officials continued their verbal guidance yesterday. One of the most “hawk” members of the Bank, St. Louis Fed President James Bullard stated that the Fed may have to increase the policy rate by 50 basis points this year.
San Francisco Fed President Mary Daly also stated that the Fed should stick to the data when making monetary policy decisions, and reminded that many more data will be announced before the June meeting.
Analysts drew attention to the manufacturing industry and service sector Purchasing Managers Index (PMI) data, which will be announced around the world today, and noted that the signals to be taken from these data could give important messages regarding economic activity.
While these developments caused the demand for the dollar to remain strong, the ounce price of gold, which continues to move in a downward trend, is currently trading at $ 1,960, 0.6 percent below the previous close.
Continuing its downward trend as concerns about economic activity in China increased and the supply side remained strong, copper is trading at $3.65, the lowest level of the last 7 months, on the new day.
Yesterday, the S&P 500 index rose 0.02 percent and the Nasdaq index rose 0.50 percent in the New York stock market, while the Dow Jones index fell 0.42 percent. Index futures contracts in the USA started the new day with rising.
While a mixed course stood out in Europe yesterday, today the members of the European Central Bank (ECB) continue to use the “hawk” tone in their verbal guidance.
ECB member Pablo Hernandez de Cos emphasized that the ECB’s interest rate hikes are not over yet and stated that interest rates should both increase further and stay at these levels for a while.
While the DAX 40 index in Germany decreased by 0.32 percent, the CAC 40 index in France by 0.18 percent and the MIB 30 index in Italy by 0.76 percent, the FTSE 100 index in the UK rose by 0.18 percent. Index futures contracts in Europe started the day with a decline.
While the stock markets in Asia move in a downward trend in the new day, the concerns regarding the economic activity in China continue to strengthen.
Analysts stated that the strengthening in economic activity slowed down after China lifted the measures against the Covid-19 epidemic, and this situation made pricing difficult.
On the Japanese side, the selling pressure in the stock markets strengthened with the news that the country will impose a limit on semiconductor chip exports as of July 23.
According to the data announced today in Japan, the manufacturing industry PMI rose to 50.8 and the service sector PMI to 56.3.
While the Nikkei 225 index decreased by 0.4 percent in Japan, the Hang Seng index in Hong Kong decreased by 0.7 percent and the Shanghai composite index in China decreased by 1 percent, the Kospi index in South Korea increased by 0.4 percent.
BIST 100 index in Borsa Istanbul, which followed a sales-weighted course in the domestic market yesterday, finished the day at 4,466.19 points, 0.79 percent below the previous closing.
Dollar/TL is trading at 19.8410 at the opening of the interbank market today, after closing at 19.8326 with an increase of 0.1 percent yesterday.
Analysts stated that today, the financial services confidence index in the country, the manufacturing industry and service sector PMI abroad, and the new house sales data in the USA will be followed, technically, the BIST 100 index 4.400 and 4.200 levels are in the support position, and 4.500 and 4.600 points are in the resistance position. noted that.