Global markets started the first trading day of the week on a positive note, as expectations that the country’s economy might make a “soft landing” came to the fore following the employment data announced last week in the United States.
While optimism that the economy may make a “soft landing” in the United States continues to gain strength, this week, the intensive data agenda, especially inflation, is the focus of the markets in the country.
Better-than-expected employment data in the country revealed that the economy was improving, increasing the risk appetite in global markets.
While non-agricultural employment in the USA increased by 254 thousand people in September, above expectations, the unemployment rate decreased from 4.2 percent to 4.1 percent.
In September, employment growth reached its highest level in 6 months, and the unemployment rate fell to its lowest level in the last 3 months.
Average hourly earnings, closely monitored by the US Federal Reserve (Fed), increased by 0.4 percent to $35.36.
Analysts stated that recession concerns in the USA decreased after the announced employment data, and that the inflation data to be announced this week is of great importance for the direction of the markets.
While the statements of Fed officials were also monitored, Chicago Fed President Austan Goolsbee stated that the end of the dock workers’ strike was good news for the country’s economy.
Emphasizing that one should not overreact to a single data, Goolsbee stated that if the workforce reports announced on Friday continue to be seen, he will be sure that full employment has been reached.
Goolsbee stated that the majority of Fed policymakers think interest rates will fall a lot next year.
According to the pricing in the money markets, it is considered certain that the Fed will cut interest rates by 25 basis points in November.
Stating that geopolitical developments are also being followed, analysts noted that the news flow from here may reduce the risk appetite in global markets.
With these developments, the US 10-year bond interest is currently at 3.98 percent, while the dollar index is at 102.5 levels in the new week.
While the ounce price of gold lost 0.1 percent in value on Friday, it is currently trading at 2 thousand 644 dollars, 0.4 percent below the previous closing.
After completing Friday at $77.9 with a 0.6 increase, the barrel price of Brent oil decreased by 0.5 percent to $77.5 on the first trading day of the week.
On Friday, the Dow Jones index rose 0.81 percent, the S&P 500 index rose 0.90 percent and the Nasdaq index rose 1.22 percent. Index futures contracts in the USA started the new day with an increase.
While a positive trend was evident in European stock markets, excluding the UK, on Friday following the employment data announced in the USA, concerns about economic stagnation in the region remain.
On the other hand, European Union member countries supported the proposal to impose additional customs duties of up to 45 percent on Chinese-made electric cars.
Analysts stated that the European Central Bank (ECB) is expected to cut interest rates by a total of 50 basis points by the end of the year, based on the pricing in money markets, and noted that the signals from macroeconomic data are closely followed by investors.
On Friday, the DAX 40 index in Germany gained 0.55 percent, the FTSE MIB index in Italy gained 1.28 percent, the CAC 40 index in France gained 0.85 percent, while the FTSE 100 index in England fell 0.02 percent. Index futures contracts in Europe started the day with an increase.
While Asian markets are dominated by buyers, no transactions are taking place in China due to the holiday.
Analysts noted that the positive effects of the economic incentives announced in China continue in Asian markets.
The effects of the news flow on Asian markets that Chinese National Development and Reform Commission officials will hold a briefing tomorrow on the implementation of gradual economic policies will also be followed.
On the other hand, according to the data announced today, the leading index for August in Japan was within expectations with 106.7.
While the dollar/yen parity completed Friday at 148.71 with an increase of 1.2 percent, it is currently at 148.50 with a decrease of 0.2 percent.
Near the close, the Nikkei 225 index in Japan rose 2.3 percent, the Hang Seng index in Hong Kong rose 1.2 percent, and the Kospi index in South Korea rose 1.5 percent.
BIST 100 index at Borsa Istanbul, which followed a buying-oriented trend on Friday, completed the day at 9,109.34 points, with an increase of 2.37 percent compared to the previous closing.
While Dollar/TL closed at 34.2571 with a 0.30 percent increase on Friday, it is traded at 34.2670 at the opening of the interbank market today, just above the previous closing.
Analysts stated that today the treasury cash balance in the country and retail sales in the Eurozone will be followed abroad, and noted that technically, the 9,200 and 9,300 levels in the BIST 100 index are resistance, and the 8,850 and 8,700 points are support.
