Global Markets Started the Week with a Mixed Trend
While US employment data, Fed policies, and geopolitical tensions in the Middle East led to a mixed trend in global markets, attacks on energy facilities drove oil prices and the dollar index higher.
Global markets started the week with a mixed trend under the influence of employment data in the US, expectations regarding the Fed's interest rate policies, and geopolitical tensions in the Middle East.
Fed Expectations and Bond Yields
The US employment data indicating a cooling in the labor market and Fed officials signaling a pause in rate hikes weakened expectations that the bank would go for additional tightening.
In money market pricing, the probability that the Fed will keep its policy rate steady at this month's meeting exceeded 80%, while a 25 basis point rate hike in December is priced at a 95% probability.
Energy Facilities Targeted in the Middle East
The Iran-backed Houthis in Yemen announced that they targeted the facilities of Saudi Arabia's national oil company Aramco in the Riyadh and Khurais regions with missiles and unmanned aerial vehicles.
The targeting of energy facilities fueled concerns regarding oil supply, pushing the barrel price of Brent crude back above $100.
Military Preparations Between Israel and the US
According to claims in the Israeli press, the US is preparing to send additional troops and aircraft to Israel as part of preparations against a possible escalation in the Middle East.
While the Israeli army continues its preparations against the possibility of a new conflict with Iran, military coordination with CENTCOM continues within the framework of various scenarios.
Dollar Index and Precious Metals
Amid concerns that geopolitical tensions will strengthen inflationary pressures, demand for the dollar increased, with the dollar index rising 0.5% to the 102.5 level.
While the ounce price of gold traded 0.2% lower at $4,134, the ounce of silver stood 1.1% higher at $61 with technology and electrification expectations.
Bond Spread and Market Status in Europe
While financial concerns and political uncertainties persist in France, the 10-year bond yield spread between France and Germany rose to 141 basis points, reaching its highest level since 2012.
On Friday in European stock markets, the indices of the UK, Italy, France, and Germany posted gains, while some stock exchanges in Asia remained closed due to holidays.
Borsa İstanbul and Domestic Developments
Following a buying-heavy trend domestically on Friday, Borsa İstanbul's BIST 100 index completed the day with a 0.17% gain at 12,270.18 points.
Investors and market participants are closely following the September inflation data to be announced domestically today.