Risk appetite increased in global markets
While higher-than-expected PPI and retail sales data in the US raised inflation concerns, the easing of selling pressure in the bond market supported risk appetite in global markets.
While the Producer Price Index and retail sales data in the US coming in above expectations fueled persistent inflation concerns, a recovery and increase in risk appetite were observed in global equity markets as selling pressure in the bond market eased.
US Inflation and Data
In the US, the Producer Price Index rose by 1.3 percent monthly and 6.3 percent annually in September, exceeding expectations. Producer inflation reached its highest level since March 2022 on a monthly basis and December 2022 on an annual basis.
Following the Consumer Price Index data, the acceleration in the PPI increase heightened concerns over persistent price pressures, while retail sales rising by 0.8 percent monthly in September reinforced expectations that the Fed will maintain its tight monetary policy.
Bond Market and Technology
Investor orientation toward bonds due to economic growth concerns played a role in the decline of bond yields. The US 10-year Treasury yield dropped to 4.08 percent before entering a sideways trend.
Technology stocks, which came under pressure yesterday due to high interest rate concerns, showed a recovery trend today following optimistic remarks on the artificial intelligence theme by Fed Chair Kevin Warsh.
Commodity and Foreign Exchange Markets
With the easing of selling pressure in the bond market, the dollar index hovered at 101.9 with a 0.2 percent decrease, while spot gold traded just above the previous close at 4,171 dollars per ounce.
Following the International Energy Agency's agreement to release a record level of emergency reserves and more than 20 million barrels of diesel to the market, the barrel price of Brent crude fell by 0.5 percent to 105.4 dollars.
New York Stock Exchange Trend
Despite declines in technology company shares, the New York stock market followed a positive course driven by gains in healthcare sector stocks. While Nvidia, AMD, and Intel lost value, Eli Lilly and UnitedHealth shares rose.
The number of initial jobless claims in the US rose to 199 thousand in the week ending October 10, coming in line with market expectations, and indices gained value.
European and Asian Stock Exchanges
European stock exchanges followed a positive trend, excluding Italy, supported by strong corporate earnings reports and gains in healthcare sector stocks. In the UK, growth exceeded expectations at 0.1 percent monthly and 2.1 percent annually.
Asian stock markets traded positively under the influence of the recovery trend in technology stocks. Strong gains were recorded in indices across South Korea, Japan, Hong Kong, and China.
Borsa Istanbul Data
On Borsa Istanbul, the BIST 100 index followed a sell-weighted course yesterday, completing the day with a 0.40 percent loss in value at 12,070.17 points.