Global Markets Focus on Next Week's Inflation Data
While global equity markets follow a mixed course, investors have turned their focus to next week's inflation data and speeches by central bank governors.
While global equity markets follow a mixed course amid developments in the Middle East, the Federal Reserve's monetary policy expectations, and technology companies' earnings forecasts, worldwide inflation data set to be released next week has become the focal point for investors.
Middle East Developments and Energy Market
The conflicts in the Middle East reaching a dimension that threatens energy supply have influenced the direction of asset prices. The slowdown of tanker traffic in the Strait of Hormuz has increased concerns regarding energy supply.
Inflation Expectations and Central Banks
Analysts stated that inflation data will guide the interest rate policies of central banks worldwide, noting that if the data falls below expectations, the tightening process could slow down.
The Fed's Interest Rate Policy and Minutes
The minutes of the FOMC meeting published this week signaled a potential rate hike by the end of the year. Messages from bank officials also reinforced these expectations and pointed to the December meeting.
Technology Sector and Earnings Season
Variable expectations regarding whether company profitability, particularly in the field of artificial intelligence, will continue have increased volatility in the markets. Question marks over OpenAI's annual revenue targets created selling pressure.
Bond, Foreign Exchange and Commodity Markets
The US 10-year Treasury yield finished the week at 5.25 percent, while the dollar index rose 0.3 percent on a weekly basis to 102.2. The ounce price of gold climbed to 4,194 dollars, while the barrel price of Brent crude closed at 104.4 dollars.