Oil Prices and Global Central Bank Decisions Shape the Markets
While US-Iran tensions and Saudi Arabia's low production data drive oil prices up, the hawkish policies of global central banks create selling pressure in the markets.
While oil prices in global markets show an upward trend due to conflicts between the US and Iran and Saudi Arabia's low production data, interest rate hike expectations of central banks are putting pressure on stocks and precious metals.
Developments in the Oil Market
Hot conflicts between the US and Iran and uncertainties in the Strait of Hormuz have given momentum to oil prices. The news that Saudi Arabia reduced its oil production to its lowest level since 1990 also increased concerns in the markets.
Hawkish Policies of Central Banks
Global central banks' tight monetary policy steps continue without slowing down. While the European Central Bank increased its interest rate by 25 basis points, interest rate hike expectations ahead of the Fed and Bank of Japan meetings remain in the focus of the markets.
Borsa Istanbul and CBRT Decisions
The CBRT kept the interest rate constant at 37 percent at its meeting held on September 10. Borsa Istanbul, on the other hand, is trying to decouple from external markets in the shadow of regulations such as the Capital Markets Board's communiqué on funds and the withholding tax introduced on monetary funds.
Foreign Investor Movements
Foreign investors made heavy sales on the equity side of Borsa Istanbul in the week ending September 4. During this period, net sales of 647 million dollars were seen in equities, while 156 million dollars of purchases were made in the bond market.
Situation in Gold and Bond Markets
Increasing interest rate hike expectations are creating selling pressure on gold and silver prices. While the US 10-year Treasury yield reached 4.97 percent, pullbacks in Borsa Istanbul are monitored as technical corrections.