Global markets started the week on a mixed note, with energy prices in focus in the shadow of the conflicts in the Middle East.
While the tension in the Middle East that spread to the region after the USA and Israel launched an attack on Iran on February 28 continues to have an impact on the direction of the markets, the news flow from the region is closely followed.
Iran’s almost complete halt of passage through the Strait of Hormuz deeply shook the global energy supply network, while rising oil prices strengthened global inflation concerns. While increasing risk perception and uncertainty cause investors to act cautiously, US President Donald Trump’s statements are in the focus of investors.
Speaking yesterday, US President Trump stated that Iran should open the Strait of Hormuz and said, “Open the Strait or you will live in hell.” he said.
Stating that if the Tehran administration does not make a quick agreement, Trump said that he is thinking of “blowing up everything and seizing the oil” in Iran, he said that bridges and power plants will be seen destroyed all over Iran.
In addition to Trump’s harsh messages, his messages regarding diplomatic channels also attracted attention. US President Trump said that the US could reach an agreement with the Tehran administration and that negotiations are currently continuing.
In addition, Trump, who had previously threatened Iran if it did not open the Strait of Hormuz within 48 hours, stated in his post on his social media account later yesterday that he extended the 48-hour period he gave the Tehran administration to make an agreement until April 8.
Trump, who toughened his statements in his posts about Iran, made the statement about the extension of time after the second pilot who survived the US plane that crashed in Iran was rescued safely.
Trump described the military initiative in question as “one of the bravest search and rescue operations in US history” and announced that the second pilot was also rescued.
While there were no transactions in the New York Stock Exchange on Friday due to the holiday, the markets finished Thursday with a mixed course. While the Dow Jones index decreased by 0.13 percent, the S&P 500 index gained 0.11 percent and the Nasdaq index gained 0.18 percent.
Index futures contracts in the USA started the week with a mixed course, with mixed signals received from the intense news flow regarding the conflicts in the Middle East over the weekend.
Due to the tension in the Middle East, a sell-off trend stands out in the bond market. The US 10-year bond rate increased by 3 basis points to 4.35 percent. The dollar index increased by 0.1 percent and stabilized at 100.2 levels.
Due to the impact of these developments, an ounce of gold is traded at 4 thousand 647 dollars with a 0.6 percent decrease, and a barrel of Brent oil is traded at 106.6 dollars with a 0.1 percent increase.
While there will be no transactions in European stock markets on Friday due to the Good Friday holiday, the regional markets will be closed today due to the Easter holiday.
While the developments in the Middle East and their effects continue to remain in the focus of the region, the finance ministers of the 5 European Union (EU) member countries called for a new EU-wide regulation to tax unexpected profits caused by energy prices.
The letter signed by the finance ministers of Germany, Italy, Spain, Austria and Portugal and sent to the EU Commission Member Responsible for Climate, Net Zero and Clean Growth, Wopke Hoekstra, on April 3, titled “taxation of unexpected profits”, was shared with the public.
Pointing out the importance of distributing the resulting burden fairly, the letter noted that the ministers of the five countries in question supported the measures to tax the unexpected profits made by energy companies at the Eurozone Finance Ministers meeting at the end of March.
The letter reminded that a similar practice was previously implemented in 2022, when the Russia-Ukraine War started, with the temporary solidarity contribution brought as part of the emergency response against high energy prices.
While a positive trend is observed in Asian stock markets due to the rise in technology stocks, there are no transactions in the Chinese and Hong Kong markets due to the holidays on the Chinese side.
While high energy costs and ongoing geopolitical tensions continue to pressure equity markets in the region, continued investor interest in the technology sector is effective in keeping the indices on the positive side.
Shares of chip material manufacturer Resonac Holdings, traded on the Nikkei 225 index in Japan, are trading up 6.7 percent, shares of advanced electronic cable and equipment manufacturer Furukawa Electric are up 5.4 percent, shares of Lasertec, which produces equipment for the semiconductor industry, are up 5 percent, and shares of Advantest, a manufacturer of test equipment for the semiconductor industry, are trading up 3.2 percent.
On the other hand, China’s intense diplomatic traffic continues. Chinese Foreign Minister Wang Yi discussed the situation in the Middle East in his telephone conversation with his Russian counterpart Sergey Lavrov.
Stating that the situation in the Middle East is deteriorating and the conflict is gradually escalating, Wang stated that China and Russia, as permanent members of the United Nations Security Council (UNSC), should strive for wider understanding and support from the international community with an objective and balanced approach, taking justice as a principle.
Russian Minister Lavrov also stated that they are concerned about the rising tension in the Middle East, and that they think that military operations regarding the ongoing war and the situation in the Strait of Hormuz should be ended immediately and a political and diplomatic solution should be returned to the root of the conflict and the problem.
With these developments, the Nikkei 225 index in Japan is trading with an increase of 1.2 percent and the Kospi index in South Korea is trading with an increase of 0.8 percent.
BIST 100 index at Borsa Istanbul, which followed a sales-oriented trend on Friday, finished the day at 12,936.35 points, losing 0.88 percent of its value.
The April futures contract based on the BIST 30 index in Borsa Istanbul Futures and Options Market (VIOP) was traded at 15,000.00 points in the Friday evening session, just above the normal session closing.
While Dollar/TL completed Friday at 44.4920, it is traded horizontally at 44.6020 at the opening of the interbank market today.
Analysts stated that today the real effective exchange rate in the country and the ISM service sector Purchasing Managers Index (PMI) data in the USA will be followed abroad.
Stating that the trading volume in global markets may be low due to the holidays in China, Hong Kong and European markets, analysts noted that technically, 12,900 and 12,800 points in the BIST 100 index are support and 13,000 and 13,100 points are resistance.
