In the USA, both the debt limit crisis and the easing of concerns about the Fed increased the risk appetite in the markets.
While the US Senate approved the bill that will prevent the country from going into default by increasing the debt limit, the bill, which foresees the suspension of the limit until January 1, 2025, will be submitted to the signature of US President Joe Biden for enactment.
While the expectations regarding the monetary policy in the country changed significantly compared to the beginning of the week, the verbal guidance of the Fed members was effective in this development.
Philadelphia Fed President Patrick Harker said he tends to “skip” the rate hike at its June meeting.
Pointing out that the Fed is close to the point where it can keep interest rates constant, Harker said that they do not have to continue raising interest rates.
st. Louis Fed President James Bullard also stated that monetary policy is in better shape after the rate hikes.
According to the data released yesterday, private sector employment in the USA increased by 278 thousand people in May, exceeding market expectations, while annual wage growth decreased from 6.7 percent to 6.5 percent in the said period.
Analysts reminded that the Fed monitors wage increases closely regarding inflation, and said that the decline in this area may have relieved the Bank’s policy area.
With these developments, the expectations that the Fed will keep the policy rate constant at the meeting on 14 June in pricing in the money markets rose to 75 percent, while the eyes were turned to non-farm employment data today.
Reminding that the labor market in the USA is still very hot despite the Fed’s steps, analysts said that the signals to be taken from the data in the employment report to be announced today may have an impact on the Fed’s policy steps.
On the other hand, while commodity prices moved in an upward trend with the news flow in question, the price of Brent oil per barrel increased by 3.1 percent to $ 74.4, while an ounce of gold increased by 0.7 percent to $ 1,977. Commodity prices remain positive in the new day as well.
Yesterday, the S&P 500 index rose 0.99 percent, the Nasdaq index rose 1.28 percent and the Dow Jones index rose 0.47 percent in the New York stock market. Index futures contracts in the USA started the new day with a rise.
While a buying-heavy trend emerged in Europe yesterday, European Central Bank (ECB) President Christine Lagarde stated that there is no clear evidence that core inflation has reached its peak and pointed out that interest rate hikes will continue.
Emphasizing that interest rate hikes started a downward trend in inflation and that they should move more slowly in the next rate hikes, Lagarde said, “We will create our new projections at our meeting on June 15, and this will present us the updated picture for our tightening policy.” used the phrases.
ECB member Fabio Panetta told a newspaper yesterday that the final interest rate is not far from current levels.
On the other hand, annual inflation in the Eurozone, which was 7 percent in April, became 6.1 percent in May.
Yesterday, the FTSE 100 index rose 0.59 percent in the UK, the DAX 40 index rose 1.21 percent in Germany, the CAC 40 index rose 0.55 percent in France and the MIB 30 index rose 2.01 percent in Italy. Index futures contracts in Europe started the new day with a buying weighted course.
While the buying-heavy trend in the USA was carried over to the Asian markets in the new day, the strengthening of the expectations that the Fed might not raise interest rates on June 14 increased the risk appetite in the region.
Recalling that especially the technology-intensive Hong Kong stock market has been negative since mid-April, with uncertainties regarding the Fed’s monetary policy for a while, he said that interest rate-sensitive technology companies received support from the possibility that the Fed may pass at this month’s meeting.
On the other hand, Bank of Japan (BoJ) Ueda Kazuo said that it will take time for inflation to reach the Bank’s target.
Close to the closing, Nikkei 225 index in Japan rose 1 percent, Shanghai composite index in China rose 0.6 percent, Hong Kong Hang Seng index rose 3.5 percent and Kospi index in South Korea rose 1.1 percent.
BIST 100 index in Borsa Istanbul, which followed a buying-heavy course in the domestic market yesterday, finished the day at 4,959.80 points, 1.49 percent above the previous closing.
Dollar/TL is traded at 20.9050 at the opening of the interbank market today, after closing at 20,8108 with an increase of 0.1 percent yesterday.
Analysts stated that the FX assets of companies outside the financial sector in the country and the employment report data in the USA abroad will be followed today, and noted that technically, the 5,000 and 5.200 levels in the BIST 100 index are resistance and 4,800 points are support.