The positive trend seen in technology stocks with optimism regarding the artificial intelligence theme continues to support the risk appetite in global markets. News that US-based technology company Nvidia will invest $3 billion in Meta also influenced the increasing demand for technology shares.
Investors have also focused on the earnings sheets of Alphabet and Microsoft, expected to be released after the close of US markets, for evidence of whether heavy spending on artificial intelligence infrastructure is translating into lasting revenue growth.
Geopolitical developments are also in the focus of the markets. As supply concerns increased following the news that Iran-backed Houthis in Yemen attacked a refinery in Saudi Arabia, the barrel price of December term Brent oil increased by 1.4 percent to 115.5 dollars.
The lack of any concrete developments in reaching an agreement between the USA and Iran is also effective in the rise in oil prices.
With the rise in oil prices increasing inflationary concerns and predictions that interest rates may remain at high levels for a long time, the US 10-year bond interest rate is again above 5 percent, while the dollar index rose to the highest level since October 14 with 102.4. An ounce of gold is traded at $4,033, with a decrease of 0.7 percent.
The rise in technology stocks and the move away from safe-haven assets by investors also contributed to the rise in bond yields.
On the other hand, according to the Israeli press, while approximately 16.8 percent of the votes in the general elections have been counted, the race between the bloc led by Prime Minister Benjamin Netanyahu and the opposition is neck-and-neck.
According to the data on the website of the Israel-based Yedioth Ahronoth newspaper, the Netanyahu bloc received 50.4 percent of the votes counted, and other opposition parties received 49.6 percent.
Analysts said that the election results in Israel will also be decisive on the direction of the geopolitical course and markets in the Middle East.
On the other hand, today’s interest rate decision of the Fed is the focus of the markets. The Fed is expected to keep the policy rate constant. Analysts stated that the messages to be given at the meeting regarding the future interest policy in the face of inflation pressures are important.
Although Fed President Kevin Warsh is not expected to give many clues about December, he is expected to avoid statements that would weaken the interest rate hike expectations that the markets have already priced in.
NEW YORK STOCK EXCHANGE CLOSED WITH A RISE
The New York Stock Exchange finished the day with a rise yesterday due to the increase in the shares of companies related to artificial intelligence.
Nvidia’s shares gained 1 percent, Advanced Micro Devices’ shares gained 5.5 percent and Micron Technology’s shares gained 2.8 percent.
On the macroeconomic data side, the amount of durable goods orders, which is important in providing information about industrial production in the USA, increased by 1.8 percent on a monthly basis in September. The country’s Conference Board Consumer Confidence Index rose to 91.7 in October, exceeding market expectations.
Index futures contracts in the USA started the day with a mixed trend.
EUROPEAN STOCK EXCHANGES WERE POSITIVE EXCEPT UK
European stock markets were predominantly buying due to the decline in oil prices yesterday.
Consumer confidence index in France decreased by 5 points in October compared to the previous month, falling to the level of 80. This was the lowest level recorded since June 2013.
Meanwhile, increasing competition and production costs from Chinese automotive companies are putting the profitability of German automotive companies under pressure. With this development, Mercedes-Benz revised its profit expectation for 2026 downwards and the company’s shares lost 3.9 percent.
Although the pre-tax profit of HSBC, one of Europe’s leading banks, in the third quarter increased by 32 percent on an annual basis to $9.6 billion, the company’s shares lost 5.4 percent in value because it did not revise its forecasts upwards for the end of the year. The decline in HSBC shares was effective in the decline in the British stock market.
On the other hand, the interest rate decision of the European Central Bank (ECB) will be the focus of the markets tomorrow.
As energy costs rise in Europe, question marks regarding the growth outlook are becoming apparent. The possibility of growth losing momentum makes it difficult for the ECB to maintain the balance between the goals of fighting inflation and supporting economic activity.
The bank, which increased the three main policy rates by 25 basis points in its meeting in September, is expected to remain cautious and keep the interest rates constant in this meeting. Market expectations are shaping up to be that the ECB may increase interest rates in December.
With these developments, the DAX 40 index in Germany gained 0.71 percent, the CAC 40 index in France gained 0.51 percent and the FTSE MIB 30 index in Italy gained 0.9 percent, while the FTSE 100 index in England lost 0.75 percent.
Index futures contracts in Europe started the day with a mixed trend.
ASIAN STOCK EXCHANGES ARE POSITIVE
The positive trend in the New York Stock Exchange, driven by the rise in technology stocks, also moved to Asian markets on the new day.
As South Korea-based technology company SK Hynix’s operational profit for the third quarter increased by 632.1 percent, reaching 83.3 trillion won, and its revenues increased by 327.9 percent, reaching 104.6 trillion won, the company’s shares increased by 10.1 percent.
Analysts stated that the data in question indicates that companies’ demand for artificial intelligence products continues. Shares of Samsung Electronics also increased by 8.3 percent.
With these developments, the Nikkei 225 index in Japan increased by 1.2 percent, the Kospi index in South Korea increased by 6.3 percent, the Shanghai composite index in China increased by 0.7 percent, and the Hang Seng index in Hong Kong increased by 0.4 percent.
PAYMENTS UNDER THE EXTRAORDINARY LIQUIDATION WILL START ON FRIDAY
BIST 100 index at Borsa Istanbul completed the day with a horizontal course at 11,151.03 points.
The October futures contract based on the BIST 30 index in the Borsa Istanbul Futures and Options Market (VIOP) gained 0.27 percent in yesterday evening session compared to the normal session closing.
While Dollar/TL closed the day yesterday at 49.8067 with an increase of 0.10 percent, today it is traded at 49.8350 at the opening of the interbank market, 0.1 percent above the previous closing.
Meanwhile, international rating agency Fitch Ratings expects Türkiye’s debt capital market to continue growing and the total size of debt instruments in circulation in the market to reach $550 billion by 2027.
In addition to economic data, developments regarding the funding issue are also closely followed. All operating permits and authorization certificates of Tera Yatırım Menkul Değerler AŞ have been cancelled. It was decided to compensate the investors and gradually liquidate the company.
On the other hand, Vice President Cevdet Yılmaz answered the questions and criticisms of the members of parliament regarding the 2027 Central Government Budget Law Proposal and the 2025 Central Government Final Account Law Proposal at the Grand National Assembly of Turkey Planning and Budget Commission.
Stating that 68 billion lira has been paid to a total of 93 funds and 71 thousand 899 accounts as of October 23, Yılmaz stated that payments up to 1 million lira within the scope of extraordinary liquidation will start as of Friday through İş Bank and Ziraat Bank, and that the payments will be made starting from the lowest amount to the higher amounts.
Analysts stated that the foreign trade balance and Service Producer Price Index will be followed domestically today, and the intense data agenda, especially the Fed’s interest rate decision, will be followed abroad today, and noted that technically, 11,300 and 11,400 points in the BIST 100 index are resistance, while 11,000 and 10,900 points are support.
There will be a half-day session in domestic markets today due to the eve of October 29, Republic Day.
