Mixed Start for Global Markets at Beginning of Week
Central banks around the world have been aggressively pursuing hawkish policies to curb inflation, but uncertainty remains about the timing and size of future interest rate cuts. Recent data from the USA shows that the service sector is slowing down, despite a tight labor market. This complicates predictions about the US Federal Reserve’s (Fed) future monetary policy steps.
Analysts suggest that the Consumer Price Index (CPI) data announcement may provide signals about the Fed’s future path. Expectations in the money markets indicate that the Fed will hold the policy rate constant at the January meeting, with a 65 percent probability of the first interest rate cut occurring in March.
Amidst these expectations, bond markets experienced selling pressure, and the US dollar index hovered around 102.5. The price of gold decreased by 0.4 percent, while oil prices declined due to reports of Saudi Arabia reducing official sales prices.
Factors including the grounding of “Boeing 737 MAX 9” aircraft and geopolitical events in the Red Sea have added to market volatility. In Europe, there is concern that the European Central Bank (ECB) may delay interest rate reductions due to ongoing high inflation rates.
Meanwhile, in Asia, Japan’s stock markets were closed for a holiday, as China’s efforts to support its economy and strict regulations for the gaming industry impacted market sentiment.
The Borsa Istanbul (BIST 100) index in Turkey recorded a 1.07 percent gain, reaching 7,628.73 points. Moody’s upcoming announcement on Turkey’s rating is awaited with interest, while the dollar to Turkish lira exchange rate remained relatively stable.
This week, markets will focus on the results of the “Investor Days” meeting in New York, as well as key economic indicators and events. Technical analyses suggest resistance levels at 7,700 and 7,800 for the BIST 100 index, with support levels at 7,600 and 7,500.
Global economists anticipate lower inflation rates for this year, while domestic reports indicate fluctuations and uncertainties in financial markets worldwide.
