Global Markets Focused on Fed and CBRT Decisions and US Data
US attacks on Iran, rising oil prices, increases in bond yields, and upcoming central bank decisions caused a volatile trend in global stock markets.
Global markets experienced a volatile week centered around oil prices climbing due to US attacks on Iran, selling pressure in the bond market, and upcoming central bank interest rate decisions. Domestically, Borsa İstanbul closed the week with a decline, while eyes turned to the interest rate decision to be announced by the CBRT next week.
Geopolitical and Economic Developments Affecting Global Markets
Renewed US attacks on Iran drove oil prices higher, while selling pressure in the bond market triggered a volatile trend on a global scale.
Influenced by Middle East-derived geopolitical risks, the price of a barrel of November Brent crude increased by 6.4 percent this week to reach $96.4.
US Bond Yields and Fed Policies
The US 10-year Treasury yield hit 4.82 percent, its highest level since November 2023, while the 2-year Treasury yield reached 4.42 percent, its highest level since January 2025.
Statements by Fed officials and non-farm payrolls data coming in above expectations reshaped expectations regarding the bank's interest rate policies.
European Stock Markets and Inflationary Pressures
European stock markets followed a sell-heavy trend due to inflationary concerns stemming from geopolitical risks and rising bond yields.
While annual CPI in the Eurozone rose to 3.3 percent in August, reaching its highest level in nearly three years, the decisions of the European Central Bank are awaited.
Asian Markets and Increases in Bond Yields
On the Asian side, rising energy costs and persistently high bond yields were among the factors putting pressure on markets.
In Japan, 5-year and 10-year bond yields reached multi-year highs, and a generally negative outlook prevailed in regional stock markets.
Domestic Markets and CBRT Expectations
In Borsa İstanbul, which followed a sell-heavy course domestically, the BIST 100 index closed the weekly basis down by 4.30 percent at 14,012.42 points.
Economists expect the Central Bank of the Republic of Turkey to keep its policy rate constant at the 37 percent level in September.