Global Markets Seek Direction Between Inflation Concerns and Technology Optimism
While US data and Nvidia's strong balance sheet created fluctuations in global markets, Turkey's 5-year CDS premium fell to 217 basis points, seeing its lowest level in recent months.
Macroeconomic data announced in the US and the financial results of technology companies continue to be decisive on the direction of global markets. While inflation concerns increase risk perception, Nvidia's earnings exceeding expectations refreshed optimism in the technology sector. Domestically, Turkey's 5-year CDS premium dropped to 217 basis points, falling to its lowest level since February 18.
US Economy and Inflation Data
While the US economy grew by 1.5 percent in the second quarter of this year, in line with estimates, personal consumption expenditures increased by 0.2 percent monthly in July, exceeding expectations. The core personal consumption expenditures price index, which is the Fed's inflation indicator, rose by 0.2 percent monthly and 3.3 percent annually in July. This situation indicated that inflationary pressures continue in the country.
Nvidia's Balance Sheet and the Technology Sector
US chip manufacturer Nvidia's revenue reached 96.2 billion dollars, increasing by 106 percent annually in the three-month period. The company's net profit also rose by 126 percent in the same period to 59.7 billion dollars. Nvidia CEO Jensen Huang stated that artificial intelligence tokens have taken on a profitable structure and that processing power means revenue.
Oil Prices and Geopolitical Developments
Expectations that the Strait of Hormuz could reopen increased the selling pressure on oil prices. News of talks between Iran and Oman and the Prime Minister of Qatar's visit to Tehran eased geopolitical risk indices. The barrel price of October delivery Brent crude was traded at 87.5 dollars with a 0.4 percent decrease.
Latest Status in Global Stock Exchanges
While a negative trend was observed in the New York stock exchange yesterday, the Dow Jones lost 0.21 percent, the S&P 500 0.02 percent, and the Nasdaq 0.08 percent. In European stock exchanges, a positive picture came to the fore, excluding the UK. In Asian markets, despite technology optimism, a mixed course was followed due to concerns about the Chinese economy.
Turkey's CDS Premium and Borsa Istanbul
The BIST 100 index on Borsa Istanbul completed the day with a 0.95 percent gain at 14,610.92 points. While the Dollar/TL was traded at 48.1350, Turkey's 5-year credit risk premium fell to 217 basis points with expectations that geopolitical risks might decrease.