Global Markets Follow Mixed Trend: Key Developments
Geopolitical risks, central bank policies, and questions surrounding the artificial intelligence sector are shaping investor decisions worldwide.
While geopolitical developments, inflation expectations, central bank policies, and questions regarding the profitability of artificial intelligence companies are leading to a mixed course in global markets, movements in Brent crude oil prices and U.S. bond yields are being closely monitored.
Pressure on Artificial Intelligence and Technology Stocks
Questions over whether U.S.-based artificial intelligence company OpenAI can achieve its annual revenue targets created selling pressure on technology stocks.
This situation led to a 5.5% decline in Oracle shares and caused other artificial intelligence-linked companies to lose value.
Geopolitical Risks and Energy Supply
Developments in the Middle East and the situation in the Strait of Hormuz increased concerns regarding energy supply, while the barrel price of December Brent crude fell to $102.8.
U.S. President Donald Trump announced that they will not launch any attacks on Iran until the congressional midterm elections.
Hawkish Messages from Central Banks
Within the scope of hawkish messages coming from Fed officials, Christopher Waller indicated that additional interest rate hikes might be necessary.
St. Louis Fed President Alberto Musalem stated that monetary policy needs to be tightened further to return inflation to its target.
Global Bonds and Precious Metals
While the yield on the 10-year U.S. Treasury note dropped to 5.22%, an ounce of gold found buyers at $4,184 in global markets.
Outlook in European and Asian Stock Markets
While European stock markets followed a negative trend, BoE Governor Andrew Bailey noted at the Istanbul Economy Forum that the global financial system must be prepared for larger shocks.
On the Asian side, Japan's Nikkei 225 index recorded a decline, while Hong Kong's Hang Seng index showed an increase.
Borsa Istanbul and Fund Liquidations
The BIST 100 index on Borsa Istanbul completed the day with a 0.75% gain at 12,213.58 points.
Treasury and Finance Minister Mehmet Simsek announced that 17 funds open on TEFAS have been liquidated and the funds of 43,000 participants have been transferred to banks.