After the inflation announced in the USA was below expectations on an annual basis, the decrease in uncertainties regarding the Fed’s monetary policy has an impact on asset prices.
In the US, the Consumer Price Index (CPI) increased by 0.2 percent on a monthly basis, in line with expectations, and by 3.2 percent on an annual basis, below market expectations.
The number of people who applied for unemployment benefits for the first time in the country increased to 248 thousand in the week ending August 5, with an increase of 21 thousand compared to the previous week.
After the aforementioned data, the expectations for a “soft landing” in the US economy gained strength, while the probability of the Fed keeping the policy rate unchanged in September is at the level of 89 percent in terms of pricing in the money markets.
Analysts said that inflation data that came in below market expectations and rising unemployment benefits strengthened the predictions that the Fed might avoid tightening its monetary policy further.
Stating that the Fed’s policies showed positive effects, analysts said that the next data flow could give more clues for the bank’s policies.
While following the statements of Fed officials, San Francisco Fed President Mary Daly pointed out that the CPI data came largely as expected, emphasizing that they were determined to reduce core inflation.
Expressing that many more data will be announced until the Fed meeting in September, Daly noted that they want to see the direction of inflation completely downward so that it is possible to talk about keeping the interest rate constant.
On the other hand, the federal government’s budget deficit came in at $221 billion in July, above expectations.
While the barrel price of Brent oil is trading at $86 with a horizontal course, the price of ounce of gold is hovering at $1,914 with an increase of 0.1 percent.
With these developments, the Dow Jones index rose by 0.15 percent, the S&P 500 index by 0.02 percent, and the Nasdaq index by 0.12 percent in the New York stock market yesterday. Index futures contracts in the USA started the day with a slight rise.
Europe
A positive trend was observed in European stock markets as the expectations that the European Central Bank (ECB) might suspend interest rate hikes in September came to the fore.
Analysts said that the risk appetite in European markets has increased with the effect of strong company balance sheets.
Yesterday, the FTSE 100 index gained 0.41 percent in the UK, the FTSE MIB 30 index in Italy gained 0.94 percent, the CAC 40 index in France gained 1.52 percent and the DAX 40 in Germany gained 0.91 percent.
Asia
In Asian markets, a sales-weighted course stands out, excluding Japan.
Analysts said that after the US administration’s decision to limit China’s technology investments, especially Chinese technology companies led the decline.
On the other hand, while concerns about economic activity in China remain strong, industrial production data to be announced next week is expected to affect asset prices in the country, which has entered a deflationary period.
While the Nikkei 225 index gained 0.8 percent in Japan near the closing, the Hang Seng index in Hong Kong fell 0.4 percent, the Shanghai composite index in China fell 1.2 percent, and the Kospi index in South Korea lost 0.1 percent. .
Domestic markets
In Borsa Istanbul, which was fluctuating in the domestic market yesterday, the BIST 100 index depreciated by 2.09 percent, closing the day at 7,441.50 points, bringing its highest level to 7,766.12 points.
Dollar/TL is trading at 27.0490 at the opening of the interbank market today, after completing the day at 27,0230 just above the previous close.
Analysts said that Vice President Cevdet Yılmaz will meet with the representatives of the financial world in Istanbul today and that the news flow from here will be followed.
Analysts stated that the balance of payments in the country and the Producer Price Index (PPI) in the USA and the consumer confidence index of the University of Michigan will be followed on the data agenda today.
