Developments in global markets and Borsa Istanbul following US inflation data
Dr. Nuri Sevgen evaluated the effects of US inflation data on global markets, changes in bond yields, and volume declines in Borsa Istanbul.
Following the US September inflation data coming in higher than expected, a volatile period was experienced in global stock markets and Borsa Istanbul. Dr. Nuri Sevgen shared the latest situation in the markets and expectations for the future.
US Inflation and Global Markets
The US September inflation data coming in above expectations brought sharp sell-offs in global stock markets. Particularly led by technology stocks, the Nasdaq index saw declines exceeding 2%.
Bond Yields and Safe Havens
Following the inflation data, demand for the dollar emerged with expectations that the Fed would raise interest rates, and investors switching to cash directed their money into US bonds. This situation led to a decline in US 10-year bond yields.
Borsa Istanbul and Volume Crunch
While the BIST 100 index tried to hold onto the 12,000 point level, the real trouble was experienced in stocks outside the BIST 100. With trading volume dropping to a third, these stocks suffered losses close to 40%.
Bill Uncertainties
Uncertainties in the draft law passed by the Parliamentary Subcommittee also played a role in the low-volume declines in the stock market. Investor anxiety negatively affected the market.
CBRT Reserves and Devaluation Expectation
Addressing devaluation questions following the statements of CBRT Governor Fatih Karahan, the expert stated that they are in a strong position due to net reserves being close to 40 billion dollars.