The city closures, which have entered their 4th week as part of the new type of coronavirus (Kovid-19) epidemic in China, are causing the risk perception of investors, who are currently worried about the negative effects of the US Federal Reserve's (Fed) hawkish monetary policy, on economic growth. In the face of this situation, although the People's Bank of China (PBoC) announced that it would increase its support to the real economy and small companies affected by Kovid-19 and keep the liquidity reasonably abundant, it could not provide enough contribution to the recovery of the risk appetite of the investor who did not see concrete steps.
While the global dollar index's strength and the expectation of a decrease in China's energy demand brought about the continuation of selling pressures in oil prices, the price of Brent oil is traded at 103.3 dollars today, after falling to 102.3 dollars with a decrease of 3.2 percent yesterday. .
It was observed that the exit of investors, whose risk appetite decreased due to inflationary concerns and economic concerns, slowed down as of yesterday, and 10-year bond yields, especially in the USA and Europe, decreased. Yesterday, the US 10-year bond yield was stabilized at 2.85 percent after falling to the lowest level of the last 10 days with 2.76 percent. Germany's 10-year bond rate fell from 0.98 percent to 0.82 percent, and the UK's 10-year bond rate fell from 1.97 percent to 1.84 percent.
With these developments, the indexes, which started the day with a decline in the New York stock market yesterday, rose under the leadership of technology stocks with the news that Tesla and SpaceX Senior Manager Elon Musk agreed to buy Twitter for approximately 44 billion dollars. While the Dow Jones index gained 0.70 percent, the S&P 500 index gained 0.57 percent and the Nasdaq index gained 1.29 percent, Twitter's shares increased by 5.7 percent. The dollar index was stabilized at 101.6 after seeing the peak of the last 2 years with 101.9 yesterday.
In the European stock markets, the continuation of the Russia-Ukraine war and the concerns that the central banks will tighten their monetary policies more quickly in the face of rising inflation remained in the focus of the agenda, while the stock markets were at a one-month low yesterday due to the prominence of economic concerns. The FTSE 100 index lost 1.88 percent in the UK, the DAX 30 index lost 1.54 percent in Germany and the CAC 40 index lost 2.01 percent in France. The euro/dollar pair is trading above 1.07 today, after seeing the lowest level since March 2 with 1.0697 yesterday.
Across Asia, concerns about supply chains come to the fore as the spread of the Omicron variant continues despite the Covid-19 measures in China. On the stock market side, it is noteworthy that the stock markets, which took over the positive closing in the US stock markets, started the new day with an increase. Shanghai composite index in China is up 0.5 percent, Nikkei 225 index in Japan is 0.6 percent and Hang Seng index in Hong Kong is up 1.3 percent.
Domestically, the BIST 100 index in Borsa Istanbul started to rise, led by banking sector shares, with BBVA's voluntary takeover bid price for Garanti increasing from 12.20 liras to 15 liras, and closed the day at 2,482.60 points with an increase of 0.41 percent. Dollar/TL, on the other hand, is at the level of 14.7760 at the opening of the interbank market today, after increasing by 0.2 percent yesterday and closing at 14.7759.
Analysts said that while concerns about inflationary pressures, geopolitical risks and the Chinese economy continue, the effects of the high interest rate environment that will occur as a result of tight monetary policies of central banks on the global economy have increased.
Analysts pointed out that the positive news pricing trend in the stock markets continued despite the concerns about the economic activity causing the risk appetite to remain low.
Analysts informed that the data agenda is calm in the domestic market today, while durable goods orders in the USA, Richmond Fed industrial index and new housing sales will be followed. .
The data to be followed in the markets today are as follows:
15.30 US durable goods orders for March
17.00 US, April consumer confidence index
17.00 US, April Richmond Fed industrial index
17.00 US, March new home sales
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