The US and Chinese economies continue to influence investor decisions for different reasons.
While the concerns about the economic activity in China come to the fore, the data flow that the US economy continues to be tight raises the question marks about the future policies of the US Federal Reserve (Fed).
While the situation in question caused the selling pressure to deepen in the bond markets, yesterday the US 10-year bond yield tested the highest of the last 16 years with 3.3660 percent. Forecasts that the Fed will raise interest rates by the end of the year have exceeded 40 percent in pricing in money markets.
In his statement on the subject, Richmond Fed President Thomas Barkin said that the recent movements in bond yields did not indicate inappropriate market tightening, but it was probably a response to strong economic data.
Stating that the Fed will not talk about the outcome of the September meeting, Barkin argued that this would require tighter monetary policy if inflation remains high and demand does not show signs of falling.
Analysts stated that the selling pressure in the bond markets indicates that inflation concerns are still strong in the USA, and that the eyes are turned to the intense macroeconomic data calendar and the messages that Fed Chairman Jerome Powell will give in his speech at the Jackson Hole Economic Policy Symposium on Friday.
On the other hand, analysts stated that chip maker Nvidia is expected to announce company financial results today, and the results of the company’s profitability, which constitutes 3 percent of the weight of the S&P 500 index, may increase the volatility in the markets.
With the uncertainty in China continuing to support demand concerns, the price of Brent oil per barrel continued its downward trend and fell below $ 84 yesterday, while an ounce of gold carried its upward trend for the second day in a row, currently at $ 1,902 with a premium of 0.3 percent.
With these developments, the Dow Jones index and the S&P 500 index decreased by 0.51 percent and the S&P 500 index decreased by 0.28 percent, while the Nasdaq index increased by 0.06 percent in the New York Stock Exchange yesterday. Index futures contracts in the USA started the new day with rising.
Europe
While a buying-heavy trend was prominent in the European stock markets yesterday, the news flow in China continues to be in the focus of investors.
While the data pointing to the strong inflation in the region continues to strengthen the possibility that the European Central Bank (ECB) may increase the policy rate by 25 basis points in the next meeting, it is stated that the messages from Jackson Hole may have an impact on these expectations.
Yesterday, the FTSE 100 index increased by 0.18 percent in the UK, the FTSE MIB 30 index increased by 0.64 percent in Italy, the DAX 40 index increased by 0.66 percent in Germany and the CAC 40 index increased by 0.59 percent in France. Index futures contracts in Europe started the new day with a rise.
Asia
While the uncertainties originating from China in Asian markets continued to have an impact on asset prices, the higher-than-expected profit announcements by the country’s most important technology companies were not enough to alleviate these concerns.
Accordingly, Baidu’s second-quarter net revenues increased by 43 percent year-on-year.
On the other hand, while the People’s Bank of China (PBoC) continues to support the yuan against the dollar, the impact of Chinese officials’ statements to calm the markets on asset prices remains limited.
While the Nikkei 225 index in Japan rose 0.41 percent and the Hang Seng index in Hong Kong rose 0.5 percent near the closing, the Shanghai composite index in China fell 0.6 percent and the Kospi index in South Korea fell 0.5 percent.
Domestic markets
BIST 100 index in Borsa Istanbul, which was mostly selling in the domestic market yesterday, closed the day at 7,771.30 points with a 0.33 percent depreciation, and brought its highest level to 7,902.95 points.
Dollar / TL is trading at 27,2150 at the opening of the interbank market today, after completing the day at 27,2043, 0.2 percent above the previous close.
Analysts stated that today, the consumer confidence index in the country, the Purchasing Managers Index (PMI) data of the manufacturing industry and services sector around the world, data on new home sales in the USA will be followed, and technically, the levels of 7,850 and 8,000 in the BIST 100 index will be followed by resistance levels. He noted that 7,700 and 7,600 points are in support position.
