Economic Agenda Evaluated in Global Markets and Borsa Istanbul
The US-Iran war, volatility in oil prices, central bank interest rate decisions, and foreign investor movements formed the agenda for global markets and Borsa Istanbul.
The reflection of the conflicts between the US and Iran on oil prices, central bank interest rate policies, and recent developments in Borsa Istanbul rank among the main agenda items of the economy.
Course of Oil Prices
Oil, which has become the reference point of the economy with the US-Iran war, continues its high price trend as the war persists and increases cost-push inflation.
It is predicted that if the 115 dollar resistance in Brent crude is broken, the repercussions in the markets could deepen further.
War and Supply Concerns
In addition to uncertainties in the Strait of Hormuz, Saudi Arabia's reduction of oil production in August to its lowest level since 1990 accelerated prices.
US President Trump's contradictory statements regarding when the war will end were monitored in the markets, but did not create a direct impact on prices.
Central Bank Interest Rate Policies
While the European Central Bank raised interest rates by 25 basis points, the probability of a rate hike by the Fed at its September 16 meeting climbed to around 70 percent.
While a rate hike at the Bank of Japan's September 17 meeting is viewed as a certainty, high interest rates continue to be one of the most serious rivals to stock markets.
Latest Situation in Borsa Istanbul
Influenced by the Capital Markets Board's (CMB) communiqué regarding funds and the 10 percent withholding tax introduced on monetary funds, Borsa Istanbul decoupled positively from foreign exchanges.
In the latest regulation, excluding BIST30 shares increased interest in this group and brought along portfolio changes.
CBRT Interest Rate Decision and Foreign Investors
The Central Bank of the Republic of Turkey kept interest rates constant at 37 percent at its September 10 meeting, and the decision was in line with expectations.
According to CBRT data, in the week ending September 4, foreign investors made $647 million in stock sales, while purchasing $156 million in government bonds and bills.