While concerns about economic activity came to the fore again after the economy grew below expectations in China, which is also known as the world’s largest supplier country, it is estimated that the macroeconomic data to be announced this week and the news flow from the G20 meetings in India will also have an impact on asset prices. .
US Treasury Secretary Janet Yellen, in her statements yesterday, stated that the growth in the USA has slowed down, but the labor market continues to be quite strong, noting that she does not expect a recession.
Yellen, expressing that the tariffs applied to China are not “for tit-for-tat”, pointed out the importance of export controls in ensuring the national security of the USA.
Analysts stated that the macroeconomic data announced last week in the USA continued to highlight the possibility of a soft landing in the country’s economy, and that the ongoing balance sheet season may increase the volatility based on shares and sectors.
Today, the second quarter financial results of Morgan Stanley and Bank of America, one of the largest banks in the USA, will be followed.
On the other hand, according to the data released in the country yesterday, the New York Fed manufacturing index exceeded expectations with 1.1 in July. Thus, the index outperformed the forecasts for 2 consecutive months.
The New York Branch of the US Federal Reserve (Fed) shared the findings of the 4-month Access to Credit Survey as part of the Consumer Expectations Survey. Accordingly, the application rate for all types of loans decreased from 40.9 percent to 40.3 percent, recording the lowest level since October 2020.
After these developments, the Fed’s predictions that the Fed may end its “hawk” steps by increasing the policy rate by 25 basis points this month strengthened in pricing in the money markets, while the possibility that the Bank might cut interest rates at the end of the year continues to be included in the pricing.
While the dollar index continues to be at the lowest level of the last 15 months with 99.7, the ounce price of gold is trading at $ 1,960 with an increase of 0.3 percent on the day, and the price of a barrel of Brent oil is trading at $ 78.7, 0.4 percent above the previous close.
Yesterday, the S&P 500 in New York stock market closed with 0.37 percent, Nasdaq index with 0.93 percent and Dow Jones index with 0.22 percent increase. Index futures contracts in the USA started the new day with a sales-heavy course.
Europe
While a negative trend emerged in Europe yesterday, the verbal guidance of the European Central Bank (ECB) officials and the inflation data to be announced in the region are in the focus of investors.
ECB Member Joachim Nagel, in his statements yesterday, stated that an increase in interest rates is necessary at this month’s meeting and noted that the September meeting will be acted upon according to the data.
On the other hand, the euro/dollar parity was stabilized at 1.1250, carrying the uptrend for the 9th consecutive trading day.
The International Monetary Fund (IMF) announced that they expect a contraction this year due to the tightening financial conditions and energy shock in the German economy.
Yesterday, the FTSE 100 index lost 0.38 percent in the UK, the DAX 40 index lost 0.23 percent in Germany, the MIB 30 index lost 0.19 in Italy and the CAC 40 index lost 1.12 percent in France. Index futures contracts in Europe started the new day with a mixed course.
Asia
Stock markets in Asia started the day with a negative trend, excluding Japan.
Despite the Chinese government’s steps to support different areas of the economy, the effects of the country’s economy growing below expectations continued, while the People’s Bank of China (PBoC) did not change the medium-term lending interest rates and kept the rates unchanged at 2.65 percent yesterday.
On the other hand, it was stated that a memorandum of understanding was signed between the United Arab Emirates (UAE) and Japan for the establishment of a business council, while Saudi Arabia and Japan signed 26 agreements and protocols on renewable energy, technology and agriculture.
While the Nikkei 225 index increased by 0.2 percent in Japan near the closing, the Shanghai composite index decreased by 0.3 percent in China, the Kospi index in South Korea by 0.5 percent and the Hang Seng index in Hong Kong by 2.1 percent.
Domestic markets
BIST 100 index in Borsa Istanbul, which followed an upward trend in the domestic market yesterday, completed the day at 6,600.46 points with an increase of 2.53 percent, while achieving the highest daily closing of all time, it also brought its highest level record to 6,603.98 points.
After closing at 26,3490 with an increase of 0.6 percent yesterday, the Dollar/TL is trading at 26.3500 at the opening of the interbank market today.
Mehmet Şimşek, Minister of Treasury and Finance, held intense conversations at the G20 meetings held in India yesterday. It was reported that US Treasury Secretary Janet Yellen discussed Turkey’s economic outlook and policy direction with Minister Şimşek and President of the Central Bank of the Republic of Turkey (CBRT) Hafize Gaye Erkan.
During the meeting, it was also noted that how Turkey and the USA can work together, including in the G20, to address global economic problems and increase prosperity in the economies of the two countries.
On the other hand, Saudi Arabian Minister of Investment, Khalid bin Abdulaziz al-Falih, stated that they attach great importance to the presence of the private sector in Vision 2030 investments, “We attach great importance to the existence of the private sector in both Saudi Arabia and Turkey. We want investments to diversify and diversify.” said.
Analysts stated that today, the news flow from President Recep Tayyip Erdoğan’s ongoing visits will be followed, together with the net international investment position and housing price index in the country, and retail sales and industrial production data in the USA abroad.
Stating that the levels of 6,700 and 6,800 in the BIST 100 index can stand out as resistance technically, analysts noted that 6,500 and 6,400 points are in the support position.
