Industrial Production Contracted in Turkey and Oil Prices Fluctuated in Global Markets
While Turkey's industrial production declined in August, the CBRT Istanbul Economy Forum concluded. In global markets, developments originating from the Middle East and Russia impacted oil prices.
In the Turkish economy, August industrial production data recorded a contraction on an annual basis, while the Istanbul Economy Forum organized by the CBRT came to an end. In global markets, volatility was experienced in oil and foreign exchange rates due to geopolitical developments.
Developments in Industrial Production
According to the released data, Turkey's industrial production contracted by 1 percent on a monthly basis in August. The annual contraction, which was 0.2 percent in July, rose to 1.9 percent in August, signaling a pronounced weakening in production.
Istanbul Economy Forum Concluded
On the second and final day of the Istanbul Economy Forum, hosted by the Central Bank of the Republic of Turkey, evaluations by foreign central bank officials were closely followed. The significant gathering officially concluded with a closing speech delivered by CBRT Governor Fatih Karahan.
Fluctuations in the Oil Market
While U.S. President Donald Trump's denial of allegations targeting Iran boosted risk appetite, the Islamic Revolutionary Guard Corps' announcement that it had hit a tanker pushed prices back upward. Meanwhile, expectations that Russia will increase diesel supply and announcements that attacks on energy facilities will be halted alleviated supply concerns.
Goldman Sachs's Oil Forecast
Global financial institution Goldman Sachs cited supply risks in the Middle East region and the possibility of renewed escalation in conflicts as reasons. The bank raised its year-end December Brent oil price forecast from 85 dollars to 90 dollars per barrel.
Latest Status in Gold and Foreign Exchange Markets
Alongside the weakening of the dollar and the decline in oil prices, spot gold started the week with a 0.3 percent increase at 4,206.01 dollars per ounce. Investors' focus shifted to inflation data that will provide clues regarding the monetary policy of the U.S. Central Bank.
Latest Status in Exchange Rates
In foreign exchange markets, the dollar and the pound recorded a limited rise against the Turkish Lira, while the euro followed a near-flat course. While the dollar traded at 49.33 TL, the euro at 55.33 TL, and the pound at 65.38 TL, the most prominent increase occurred in the pound.