Global Markets and Central Banks' Interest Rate Decisions Agenda
Central banks' interest rate policies, global inflation concerns, and geopolitical developments affected world stock markets and exchange rates.
Within the framework of steps taken by central banks and developments in global markets, the Central Bank of the Republic of Turkey kept its policy interest rate constant at 37 percent, while the European Central Bank increased interest rates by 25 basis points to 2.50 percent.
Interest Rate Decisions of Central Banks
In the statement made by the Central Bank of the Republic of Turkey, it was announced that the policy interest rate was kept constant at the 37 percent level.
The European Central Bank, in line with market expectations, raised the interest rate by 25 basis points to 2.50 percent.
Inflation and Industrial Production Data
According to TurkStat data, industrial production decreased by 1 percent on a monthly basis and 0.3 percent on an annual basis in July.
On the US side, PPI data recorded a 4 percent increase on a monthly basis, and markets focused on CPI data.
Foreign Investor and Reserve Status
While foreign investors made purchases of 156.7 million dollars on the GDDS side, they realized sales of 647.6 million dollars in stocks.
Central Bank reserves declined by 1.1 percent, continuing the downward trend for the last three weeks, dropping to 184 billion 247 million dollars.
Borsa Istanbul and Global Stock Markets
Following a selling-heavy course during the day, the BIST 100 index completed the session with a 0.77 percent decrease at 14,393 points.
In US stock markets, Dow Jones, S&P 500, and Nasdaq 100 indices also closed the day with a negative outlook.
Geopolitical Risks and the Oil Market
Conflicts in the Middle East and attacks on energy facilities caused oil prices to become volatile.
Brent oil price continued to trade around 104 dollars following global developments.