Global markets are mixed

Uncertainties about the US borrowing limit are increasing their impact on asset prices every day.

While the news broke that the meeting of US President Joe Biden and congressional leaders was postponed today, it is claimed that the reason for the postponement was due to a lack of preparations in the subcommittees.

Although the statements on the subject remained in the focus of investors yesterday, the spokeswoman for the International Monetary Fund (IMF), Julie Kozack, warned that if the US enters into default, this situation will have very serious repercussions not only for the US but also for the global economy.

US Treasury Secretary Janet Yellen said a US default on its debt obligations could threaten gains in recent years and trigger a global recession.

On the other hand, as US Federal Reserve (Fed) officials continued their verbal guidance, Minneapolis Fed President Neel Kashkari stated that there is some evidence that high inflation has eased, but it still persists and this means that they must continue with their strict policy. monetary policy for a longer period of time.

According to data released yesterday in the country, the Producer Price Index (PPI) performed below expectations with an increase of 0.2 percent monthly and 2.3 percent annually in April.

The number of first-time claims for US jobless benefits rose to 264,000 in the week ending May 6, beating expectations and registering its highest value since October 2021.

While concerns over the country’s banking crisis continue to weigh on risk appetite, the share price of California-based regional US bank PacWest fell nearly 23 percent after the bank reported that its deposits they were reduced by 9.5 percent last week.

The announcement that a meeting was held between the US and China yesterday highlighted the expectation that relations could be normalized.

A senior US official is online regarding White House national security adviser Jake Sullivan’s meeting in Vienna, Austria, with China’s top-ranking diplomat, the director of the Office of the Central Relations Commission. Foreigners of the Communist Party of China (CCP), Vang Yi. he briefed reporters at the meeting.

Noting that the parties held talks that lasted more than 8 hours over two days, the official said Sullivan stressed that the United States wants to conduct relations with China “on the basis of competition, not conflict.”

COMMODITY PRICES ARE DECREASING

While the aforementioned developments led to the buyer’s bias in the bond markets into the third day, commodity prices are moving in a downtrend.

Consequently, after the price of an ounce of gold depreciated 0.7 percent yesterday, it found buyers at $2,012, 0.2 percent below the previous close, on the new day, while the The price of a barrel of Brent oil is currently at $74.5 with a decrease. of 1.1 percent.

While a strong buying trend in bond markets was highlighted yesterday, the US 10-year bond yield declined around 7 basis points to 3.45 percent.

MIXED US AND EUROPEAN EXCHANGES

Yesterday, the New York Stock Exchange’s S&P 500 Index fell 0.17 percent and the Dow Jones Index fell 0.66 percent, while the Nasdaq Index rose 0.18 percent. US index futures contracts started the new day higher.

While European stock markets followed a mixed course yesterday, the Bank of England (BoE) raised the policy rate by 25 basis points to 4.5 percent, in line with expectations.

With the BoE’s decision, which has increased interest rates 12 times in a row, the interest rate in the country has reached its highest level since October 2008.

BoE Chairman Andrew Bailey, in his remarks after the meeting, stated that they no longer expect a recession in the country and that growth will be moderate, and that interest rate hikes can continue if conditions warrant. .

While the DAX 40 Index decreased 0.39 percent in Germany, the FTSE 100 Index decreased 0.14 percent in Germany and the MIB 30 Index decreased 0.61 percent in Italy, the CAC 40 Index increased 0.28 percent in France. Index futures contracts in Europe started the new day higher.

While the mixed course in the New York stock exchange moves to Asia in the new day, concerns about economic activity in the region continue to be effective in asset prices.

Analysts, emphasizing that the US-China talks are closely watched, said the flow of news about the talks may increase volatility in the markets.

While the Nikkei 225 Index gained 0.9 percent in Japan near the close, the Shanghai Composite Index in China fell 0.7 percent, the Hang Seng Index in Hong Kong 0.4 percent and the Kospi in South Korea decreased 0.5 percent.

EXCHANGE AND EXCHANGE

The BIST 100 index of the Istanbul Stock Exchange, which yesterday followed a course of intense purchases in the domestic market, ended the day at 4,848.01 points, 7.87 percent above the previous close.

According to the data announced yesterday, the balance of payments had a deficit of 4 thousand 484 million dollars in March, while the current account formed a surplus of 1 thousand 372 million dollars, excluding gold and energy.

The dollar/TL is trading at 19.5780 at the opening of today’s interbank market, after closing at 19.5454 with a flat course yesterday.

Analysts noted that domestic retail sales volume, UK growth, industrial production and the balance of foreign trade abroad will be tracked today, as well as data from the University of Michigan confidence index on The US, and technically, the BIST 100 Index 4,900 and 5,000 resistance levels, noted that 4,750 points is in the support position.

The data to follow in the markets today are the following:

09.00 England, Q1 growth

09.00 England, industrial production and foreign trade balance for March

10.00 Türkiye, March retail sales volume

17.00 US, May University of Michigan Confidence Index

(AA)