Global Markets Focus on Next Week's Inflation Data
While global stock markets fluctuate due to developments in the Middle East and Fed expectations, investors are focused on inflation data to be released next week.
While global stock markets experienced a mixed week driven by conflicts in the Middle East, expectations regarding the US Federal Reserve's monetary policy, and technology companies' profitability projections, inflation data to be released worldwide next week became the main focus of investors.
Fed Expectations and Bond Yields
Cooling signals from the US labor market pushed expectations regarding potential hawkish steps by the Fed to December. According to pricing in money markets, it is anticipated with an 83 percent probability that the bank will keep interest rates unchanged at its meeting this month.
The US 10-year Treasury yield closed the week at 5.25 percent, while the dollar index rose to 102.2 with a 0.3 percent increase.
Current Status in Commodity Prices
Oil prices, which maintain high levels due to geopolitical risks, continue to fuel inflation concerns. The per-barrel price of December Brent crude increased by 2.12 percent to $104.4.
During the same period, the ounce price of gold experienced a 1.3 percent increase, reaching $4,194 and providing returns to investors.
International Stock Exchanges and Asian Markets
While the New York stock exchange closed the week with a positive trend, indices in European stock exchanges except for the UK drew a negative picture.
In the Asian region, the Reserve Bank of India raised its policy rate to 5.5 percent, increasing interest rates for the first time since February 2023.
Domestic Markets and Fund Liquidations
On Borsa Istanbul, the BIST 100 index closed the week with a limited decline of 0.03 percent at 12,265.98 points, while the USD/TRY exchange rate traded at 49.2700.
Treasury and Finance Minister Mehmet Şimşek announced that 17 funds open on the Turkey Electronic Fund Trading Platform had been liquidated, the funds of 43,000 participants had been transferred to relevant banks, and the legislative proposal regarding the liquidation had been submitted to the Grand National Assembly of Turkey (TBMM).
Developments at the Istanbul Economy Forum
Hosted by the Central Bank of the Republic of Turkey, the Istanbul Economy Forum brought together international and local economic authorities.
At this significant organization, Fed Member Christopher Waller, BoE Governor Andrew Bailey, and CBRT Governor Fatih Karahan delivered critical messages regarding the economy.