Global Markets Follow Positive Course Ahead of US Employment Data
As global stock markets rise due to decreasing expectations of Fed rate hikes and a decline in bond yields, attention turns to the critical US employment data.
Global markets are following a positive course supported by weakening forecasts that the US Federal Reserve will raise interest rates and a slight retreat in bond yields. Investor focus is concentrated on the non-farm payrolls data to be released in the US today.
Fed Expectations and Bond Yields
Statements by US Federal Reserve Board Member Christopher Waller indicated that interest rates could be kept steady this month if inflationary pressures ease. Following this development, forecasts that the Fed will make a rate hike in September declined.
While the US 10-year Treasury yield is moving horizontally at 4.78 percent, spot gold is trading just above the previous close at 4,474 dollars, and bitcoin is stabilizing around the 81,000 dollar level.
Developments in the Americas
US Vice President JD Vance stated at a press conference held at the White House that they believe the Fed should lower interest rates. Regarding Iran, he stated that all military, economic, and diplomatic options are on the table.
Canadian Prime Minister Mark Carney noted that they are ready for a potential trade agreement with the US, but stability and reliability are prerequisites for the deal. US President Donald Trump, meanwhile, blamed Carney for the tension with Canada.
Status of the New York Stock Exchange
The New York stock market followed a positive course yesterday as expectations for a Fed rate hike weakened. While the number of initial jobless claims in the US rose to 206,000, the foreign trade deficit reached 88.6 billion dollars in July.
Following Nvidia's announcement that it had reached an agreement to acquire artificial intelligence development platform Hugging Face for 12.93 billion dollars, the company's shares recorded a 1.8 percent increase.
European Markets and Inflation
European stock markets also ended the day positively under the influence of global developments, while July PPI expectations in the Eurozone exceeded forecasts, rising by 1.6 percent monthly and 5.8 percent annually.
Bank of England Chief Economist Huw Pill stated that rapidly raising the policy rate in response to surging inflation driven by war could reduce the need for aggressive hikes in the future.
Asian Stock Markets and Technology Stocks
Asian stock markets are following a positive course driven by strong gains in technology stocks. Shares of major companies such as Softbank Group, SK Hynix, Samsung Electronics, and Baidu gained value.
The Beijing administration called for the lifting of sanctions imposed by the US on Chinese citizens and companies on the grounds of alleged ties to Iran.
Borsa Istanbul Data and Developments
In Borsa Istanbul, the BIST 100 index lost 0.84 percent yesterday to close at 13,932.46 points, while annual consumer inflation in August materialized at 31.51 percent.
As the US dollar/Turkish lira exchange rate trades at 48.4200 at the opening of the interbank market, analysts noted that the real effective exchange rate will be monitored domestically today.