The two largest economies in the world, located on both sides of the Pacific Ocean, continue to deal with different economic problems.
According to data released yesterday in the US, retail sales increased by 0.7 percent compared to the previous month in July, reaching $696.4 billion. Market expectations were for retail sales to increase by 0.4 percent month-on-month in this period.
Neel Kashkari, the Chairman of the Minneapolis Fed, whose verbal guidance was followed yesterday, said that he was satisfied with the progress, but the inflation rate was still at a high level.
Stating that the Fed is very far from a rate cut, Kashkari stated that they need to see the data to decide whether they will increase rates further.
With these developments, the selling pressure in the bond markets was carried to the fourth trading day in a row, and in this case, the possibility that the Fed might raise interest rates again until the end of the year was effective.
Analysts stated that the minutes of the Fed meeting, which will be announced today, are in the focus of investors, and that possible signals from the minutes could shed light on the Bank’s future policies.
Analysts stated that the Fed will leave the policy rate unchanged next month with a 90 percent probability in the pricing of money markets, but stated that the uncertainties regarding the Fed’s decisions to be taken at the two meetings in the rest of the year remain strong.
On the other hand, the revenues of Home Depot, one of the US retail giants, came in above analyst expectations despite reporting a 2 percent annual decline in sales.
After the credit rating agency Fitch warned that it might downgrade some US banks, the depreciation in bank shares drew attention. Shares of JPMorgan Chase, one of the country’s largest banks, fell 2.5 percent, shares of Wells Fargo fell 2.3 percent and Bank of America’s shares fell 3.2 percent.
The ounce price of gold is currently stabilizing at $ 1,905, 0.2 percent above the previous close, while the price of Brent oil per barrel, which carries the downward trend for the third consecutive business day, is at $ 84.2.
With these developments, the Dow Jones index decreased by 1.02 percent, the S&P 500 index decreased by 1.16 percent and the Nasdaq index decreased by 1.14 percent yesterday in the New York stock market. Index futures contracts in the USA started the new day with rising.
Global selling pressure had an impact on European stock markets yesterday. The growth data to be announced today in the Euro Zone is in the focus of investors. While the dichotomy of inflation and recession remains strong in the region, natural gas prices, which continue to rise, increase the uncertainties regarding monetary policy in the region.
Yesterday, the FTSE 100 index in the UK lost 1.57 percent, the CAC 40 index in France fell by 1.10 percent and the DAX 40 in Germany lost 0.86 percent. Index futures contracts in Europe started the day with a decline.
The negative news flow from China in Asian markets continues to support the risk perception.
Despite the negative news flow, the fact that the Chinese government has not yet taken a supportive step at the level of market expectations strengthens the negative perception towards Chinese assets, while the decline in housing prices for the second month in a row has deepened the selling pressure, according to today’s data.
Analysts stated that the concern that the decline in prices in the real estate sector, which is currently in a difficult situation, may put companies in even more difficulty, stated that investors are closely following possible supportive steps from the Chinese government.
Near the closing, Japan’s Nikkei 225 index fell 1.2 percent, Hong Kong’s Hang Seng index 1.4 percent, Shanghai composite index in China fell 0.5 percent, and South Korea’s Kospi index lost 1.8 percent.
BIST 100 index in Borsa Istanbul, which was fluctuating in the domestic market yesterday, closed the day at 7,690.75 points with a 0.60 percent depreciation.
Dollar / TL is trading at 27,0640 at the opening of the interbank market today, after completing the day at 27,0614, which is 0.1 percent above the previous close.
On the other hand, the international credit rating agency Moody’s announced yesterday that the outlook for the Turkish banking sector was upgraded from negative to stable. In the statement made by Moody’s, it was noted that the steps taken by the government to implement orthodox policies after the elections in May were supportive of the operating environment of Turkish banks.
Analysts stated that today, the budget balance in the country, the Zew expectation indices in the Eurozone and Germany, the New York Fed manufacturing index and retail sales in the USA will be followed, and technically, the 7,850 and 8,000 levels in the BIST 100 index are resistance, 7,600 and 7500 levels. He noted that the score is in the support position.