Global Markets Follow Negative Trend Amid Fed Minutes and Geopolitical Tensions
Pressures from Middle Eastern tensions threatening energy supply and Fed minutes highlighting the possibility of a year-end interest rate hike created selling pressure in global markets.
The pressure of geopolitical risks in the Middle East on energy supply and the indication in the published minutes of the US Federal Reserve of the possibility of an interest rate hike by the end of the year pushed asset prices down worldwide.
Geopolitical Tensions and Oil Prices
Current tensions in the Middle East continue to challenge asset prices, and reports that the White House asked the Pentagon to develop strike options against Iranian targets heightened concerns.
Fed Minutes and Interest Rate Expectations
The minutes of the Federal Open Market Committee's September 15-16 meeting clearly revealed that another policy interest rate hike by the end of the year is likely.
Bond Yields and Precious Metals
The yield on the US 10-year Treasury note hit its highest level since April 2002 at 5.36%, while the ounce price of gold found buyers at $4,133 with a 0.5% increase.
Negative Trend in Stock Markets
While New York, European, and Asian stock markets followed a selling-heavy course, the BIST 100 index in Turkey completed the day with a 2.03% loss in value.