Worldwide Markets Show Mixed Results – Breaking News
Last week’s strong employment data in the USA has sparked discussions about the future of interest rate cuts by the US Federal Reserve (Fed). As expectations mounted that the Fed may continue to reduce interest rates in smaller increments, bond interest rates rose and global markets saw a decrease in risk appetite. Tensions in the Middle East added to the unease in the markets.
Minneapolis Fed President Neel Kashkari noted a shift in the balance of risks from high inflation to rising unemployment, further fueling speculation about future Fed actions. Money market pricing indicates a high probability of a 25 basis point interest rate cut by the Fed in November, while the possibility of a 50 basis point cut has disappeared entirely.
The US 10-year bond interest rate surpassed 4 percent for the first time since August, and the dollar index rose to 102.4 levels. Gold prices saw a slight decline, but remained steady at $2,643.
On the corporate side, Google’s shares dropped 2.5 percent following a federal judge’s ruling for more options for downloading apps and in-app payments for Android users. Analysts are eagerly anticipating the upcoming balance sheet season, with major US banks and companies like BlackRock, PepsiCo, DeltaAir, and Domino’s Pizza, set to announce their financial results.
In Europe, economic concerns persist as data show a decline in economic activity in the region. Inflationary pressures are decreasing faster than expected, prompting expectations of another 25 basis point interest rate cut by the European Central Bank. While the DAX 40 index in Germany saw a slight decrease, other European indices experienced modest gains.
In Asia, a sales-oriented trend emerged as Chinese officials’ economic briefing fell short of investors’ expectations. China’s commitment to achieving economic targets this year without announcing additional incentives disappointed market participants. Household expenditures in Japan for August declined by 1.9 percent annually.
On the domestic front, Borsa Istanbul’s BIST 100 index closed lower yesterday, with the Dollar/TL exchange rate holding steady. Analysts anticipate a calm data agenda in Turkey, while keeping an eye on the foreign trade balance in the USA. Support and resistance levels for the BIST 100 index were identified at 8,850 and 8,700 points, and 9,200 and 9,300 levels, respectively.
