Global Markets and Turkey Economy Agenda
While the economic confidence index in Turkey increased in August, expectations for a Fed rate hike strengthened in the US, leading to volatility in global markets.
In August, the economic confidence index in Turkey rose by 0.8 percent to 100.6. In global markets, statements and inflation data from the US came to the forefront, while expectations for a Fed rate hike increased and sharp declines were seen in precious metals.
Confidence Index and Foreign Trade in Turkey's Economy
Turkey's economic confidence index recorded a 0.8 percent increase in August, reaching 100.6. With this result, the index hit its highest level since the war that occurred in March.
On the other hand, the foreign trade deficit increased by 8.3 percent since the beginning of the year, rising to 60 billion 545 million dollars.
Borsa İstanbul Developments
The BIST index on Borsa İstanbul made a flat start to the final trading day of the week and followed a volatile course in the later hours of the session.
Completing the day with a 0.45 percent increase at 14,641 points, the index exhibited a flat movement on a weekly basis.
European Economy and Stock Markets
The French economy recorded zero growth in the second quarter of 2026, while the country's inflation rate rose from 2.4 percent to 2.7 percent. In Germany, the unemployment rate remained stable at 6.3 percent.
The Eurozone economic confidence index surpassed expectations, rising to 98.4 and exceeding the pre-war period level. Gains of nearly 1 percent were seen in the German and French stock markets, while the Stoxx 50 index gained 0.5 percent.
US Markets and Fed Expectations
The agenda in the US was marked by Warsh's opening speech at the Jackson Hole Economic Policy Symposium. Warsh stated that underlying inflation trends have not improved significantly.
Following the speech, the probability of a 25 basis point rate hike in the markets jumped from 35 percent to over 55 percent. Sales were observed in the US bond market, while the 10-year Treasury yield rose by approximately 1 percent.
Commodity, Cryptocurrency and Foreign Exchange Market
Sharp sell-offs took place on the precious metals front, with declines exceeding 3 percent. The DXY index largely recovered its losses and approached the 100 level once again.
While Brent crude traded around the 90 dollar level, spot gold stood at 4,440 dollars, spot silver at 66.70 dollars, and Bitcoin at 78,000 dollars.