Global markets await interest rate decisions from CBRT and European Central Bank
As tensions in the Middle East pushed oil prices above 100 dollars, risk perception in global markets rose, turning attention to the actions of central banks.
While the barrel price of Brent crude exceeded 100 dollars due to conflicts in the Middle East and the targeting of oil tankers, global markets focused on the upcoming interest rate decisions to be announced by the Central Bank of the Republic of Turkey and the European Central Bank.
Middle East Tensions and Oil Prices
Risk perception in the markets increased significantly as oil tankers were targeted and conflicts intensified in the Middle East.
US Secretary of State Marco Rubio stated that Iran would pay an economic price if it continued to open fire on US warships.
The Islamic Revolutionary Guard Corps announced that it had hit two warships belonging to the navy with ballistic missiles in response to US attacks.
Following these developments, the barrel price of Brent crude exceeded 100 dollars for the first time in about two months.
Inflation Data and Bond Yields in the US
While rising oil prices increased inflation concerns, a noticeable rise also occurred in bond yields.
Producer and consumer inflation data to be announced in the US are awaited for the Federal Reserve's future policy steps.
As the US Department of the Treasury increased its long-term bond buyback operations, the ten-year bond yield approached 4.86 percent.
European Stock Exchanges and ECB Decisions
While European stock exchanges followed a selling-heavy course, investors focused on the monetary policy decisions of the European Central Bank.
In money markets, the European Central Bank is expected to increase its three main interest rates by 25 basis points each.
Asian Markets and Borsa Istanbul
Asian markets followed a negative course due to increasing energy costs and rising bond yields.
In Borsa Istanbul, the BIST 100 index completed the day with a 0.70 percent gain in value, reaching an all-time high trading volume.
Domestically, all attention has turned to the interest rate decision to be made by the Central Bank of the Republic of Turkey.