Brent oil exceeds 100 dollars, global markets under pressure
While the increase in oil prices and geopolitical tensions have heightened inflation concerns in the global economy, the steps taken by central banks and the rise in bond yields have impacted stock markets.
Under the influence of geopolitical tensions, the barrel of Brent oil exceeded the 100-dollar mark, while rising inflation expectations and record increases in bond yields placed global markets under pressure.
Oil Prices and Geopolitical Developments
Due to diplomatic contacts within the scope of the 81st UN General Assembly held in New York falling short of expectations and tensions between the US and Iran, the barrel of Brent oil exceeded 100 dollars once again.
While high oil prices fueled inflationary pressures on a global scale, economic data and potential monetary policy steps by central banks continued to remain at the center of investors' focus.
US Economy and Fed Expectations
In the US, the manufacturing PMI rose to 57 and the services sector PMI rose to 58.7 in September, while the probability of an interest rate hike by the Fed strengthened in money markets.
Fed Board Member Michael Barr emphasized that risks regarding the inflation target have increased, stating that additional policy adjustments may be needed.
Rise in Bond Markets
Alongside inflation concerns and central bank expectations, the US 10-year Treasury yield reached 5.135 percent, its highest level since July 2007.
Within the scope of activity in the bond market, the 2-year bond yield saw the level of 4.947 percent, reflecting the tightening trend in the markets.
Commercial Contacts Between the US and China
Chinese President Xi Jinping paid an official visit to the US after an 11-year hiatus and came together with US President Donald Trump.
US Treasury Secretary Scott Bessent announced that they agreed to extend the Busan agreement with China, which was set to expire in November, until January 10.
Course of European and Asian Stock Markets
European stock markets followed a selling-heavy course with the exception of the UK, while the composite PMI in the Eurozone reached its highest level in the last 41 months at 53.1.
In Asian markets, stock exchanges excluding Japan predominantly recorded declines, while the Nikkei 225 index in Japan, which reopened after a holiday, showed an increase.
Borsa Istanbul and Diplomatic Meetings
On Borsa Istanbul, the BIST 100 index completed the day by gaining 0.40 percent at 13,251.85 points.
President Recep Tayyip Erdoğan held a meeting with Ukrainian President Zelenskyy in New York, where he was present for the UN General Assembly, stating that Turkey will continue to work for lasting peace.