Global Markets End 2021 with Mixed Results
Global markets close the year on a mixed note
As 2024 is coming to an end, global markets are experiencing a mixed course on the last trading day of the year. Predictions center around the US Federal Reserve (Fed) potentially initiating interest rate cuts in March next year.
Concerns about the end of the Fed’s 2-year-long inflation fight have been emphasized, particularly with the latest data revealing an increase in the number of people applying for unemployment benefits in the USA. This data points to a potential softening in the labor market, further fueling expectations that the Fed will start interest rate cuts in the first quarter of 2024.
In the housing market, the pending home sales index in the USA remained unchanged in November, contrary to expectations for an increase. However, the average interest rate for a 30-year mortgage decreased to 6.61 percent as of December 28. This continued decline marks its lowest level since May. Additionally, the dollar index climbed above the 101 level again.
As for oil prices, the barrel price of Brent oil increased by 0.4 percent to 77.6 dollars, and the ounce of gold increased by 0.2 percent to 2,071 dollars. In the stock market, the Nasdaq index decreased by 0.03 percent in the New York stock exchange, the S&P 500 index increased by 0.04 percent, and the Dow Jones index increased by 0.14 percent.
In European stock markets, a sales-oriented trend prevailed, with the MIB 30 index in Italy decreasing by 0.30 percent, the DAX 40 index in Germany decreasing by 0.24 percent, the FTSE 100 index in the UK decreasing by 0.03 percent, and the CAC 40 index in France decreasing by 0.48 percent.
On the Asian side, there are expectations that the Fed will start reducing interest rates next year, supporting the risk appetite in equity markets. However, there are also concerns that the Bank of Japan (BoJ) may accelerate the process of abandoning its negative interest rate policy following the latest macroeconomic data.
In Turkey, the BIST 100 index at Borsa Istanbul saw a 1.87 percent gain in value, closing at 7,396.34 points. The Dollar/TL is traded at 29.5080 at the opening of the interbank market today, after closing the day at 29.4494 yesterday, 0.2 percent above its previous closing.
Looking ahead, analysts will be following the Central Bank of the Republic of Turkey’s Monetary and Exchange Rate Policy Text and foreign trade balance data in the country. They emphasized that technically, 7,490 and 7,590 points in the BIST 100 index are resistance, while 7,300 and 7,080 levels are support.
