Sharp Sell-offs in Global Bond Markets and Developments in Borsa Istanbul
While historical increases in global bond yields and inflationary pressures negatively affected stock markets worldwide, Borsa Istanbul also closed the week with a loss.
The sharp wave of sell-offs in global bond markets and increasing inflationary pressures, combined with central banks' tight monetary policies, caused declines in stock markets worldwide, while the Borsa Istanbul BIST 100 index completed the week with a 4.88 percent loss.
Rise in Yields in Global Bond Markets
Inflationary pressures in economies and central banks' tight monetary policies led to sharp sell-offs in global bond markets.
The US 10-year bond yield rose to 5.34 percent, and the 30-year yield climbed to 5.69 percent, seeing their highest levels since 2002.
Commodity Prices and US Employment Data
Supported by rising bond yields, the dollar index reached the 102.2 level, while ounce gold lost 3.4 percent of its value, falling to 4,141 dollars.
In the US, non-farm payrolls for September increased by 29 thousand, remaining below expectations, while the unemployment rate rose to 4.2 percent.
Negative Trend in European and Asian Stock Markets
In Europe, rising energy costs and the rise of Eurozone inflation to 3.8 percent accelerated selling pressure.
In Asian markets, rising oil prices and bond yields reduced risk appetite, and the Central Bank of China went for a rate cut.
Borsa Istanbul and Steps by the Economy Administration
In Borsa Istanbul, the BIST 100 index experienced a 4.88 percent drop on a weekly basis under the influence of the global wave of sell-offs, closing at 12,270.18 points.
The Capital Markets Board announced that interim payments would be made to investors for troubled funds in the liquidation process, and the CBRT took steps.
Next Week's Inflation Agenda
Next week, the main focus of domestic markets will be the September inflation data to be announced on Monday.
Economists' expectations are shaped around monthly inflation increasing by 2.18 percent and annual inflation falling to 30.16 percent.