Search for recovery and balancing in global markets in the new week

As the search for recovery and balancing stands out in global markets in the new week following the declines experienced last week, investors are closely monitoring US corporate earnings, central bank decisions, and geopolitical developments.

Risk appetite, which had decreased last week due to accelerating inflation in the US, geopolitical risks in the Middle East, and concerns regarding the sustainability of artificial intelligence investments, increased somewhat at the beginning of the new week. Following sharp drops in technology stocks, a search for balancing was observed in the markets, while positive expectations regarding major corporate earnings to be announced in the US and the retreat in bond yields gave the markets some breathing room. While the US 10-year Treasury yield hovered around 5.07 percent, the dollar index decreased by 0.1 percent to 101.7. Meanwhile, the ounce price of gold found buyers at $4,183 with a 0.4 percent increase.

Investors focused this week on the earnings of tech giants such as Meta and Tesla, which will share their financial results on Wednesday. In money market pricing, expectations that the US Federal Reserve (Fed) will keep its policy rate unchanged at its meeting next week maintain their strength, while the bank is seen as certain to implement a 25 basis point rate hike in December. On the other hand, on the geopolitical front, Iranian Foreign Minister Abbas Araghchi's message that they are ready for diplomacy caused a retreat in oil, with the price of December futures Brent crude dropping 1.9 percent to $107.8 per barrel. Meanwhile, Donald Trump claimed that major progress has been made in peace talks between Russia and Ukraine.