Global markets eye US data

In global markets, the emphasis by Fed officials last week that the fight against inflation is not yet over stood out. Equity markets followed a buying-weighted trend as messages also emerged suggesting that this struggle could be achieved without the need for further interest rate hikes.

While the question of whether sufficient steps are being taken in the fight against inflation worldwide continues to be raised, volatility in asset prices remains strong. The fact that central banks' concerns regarding inflation persist causes uncertainties to remain high in the markets.

Although world economies have made significant progress in the fight against inflation, statements indicating that there is still a distance to cover before declaring victory are strengthening uncertainties in the markets.

The tone in Fed Chair Jerome Powell's statements was also more "hawkish" than expected.

In his remarks, Powell stated that they are not confident that a sufficiently restrictive monetary policy stance has been reached to lower inflation to the 2 percent target, adding that they would not hesitate to tighten monetary policy further if necessary.

Noting that there is still a long way to go in the process of sustainably reducing inflation to 2 percent, Powell recorded that economic growth was strong in the third quarter but that they expect it to slow in the coming quarters.

Powell conveyed that they are cautious against the risk that stronger growth could harm progress toward rebalancing the labor market and lowering inflation, which could require a monetary policy response.

On the other hand, with demand for the bond auction conducted by the US Treasury falling below expectations, the US 30-year bond yield rose by approximately 7 basis points to 4.76 percent. The US 10-year bond yield also rose by approximately 9 basis points to 4.60 percent.

While volatility continues in commodity prices, the barrel price of Brent crude finished the week with a 4.2 percent decline at 81.4 dollars. The ounce price of gold finished the week with a 2.8 percent decline at 1,938 dollars.

The cryptocurrency Bitcoin tested its highest level in the last 18 months at 37,972 dollars.

Analysts stated that investors are focused on the inflation data to be released next week for further clues regarding the course of the Fed's monetary policy.

In the week starting November 13, the Consumer Price Index (CPI) on Tuesday, retail sales, the Producer Price Index (PPI), and the New York Fed manufacturing index on Wednesday, weekly jobless claims, the Philadelphia Fed manufacturing index, industrial production, and capacity utilization on Thursday, and housing starts and building permits on Friday will be monitored.

Key data in the Eurozone

Next week, the current account balance in Germany on Monday, the ZEW economic sentiment index in Germany and growth in the Eurozone on Tuesday, the CPI in the UK on Wednesday, a speech by European Central Bank (ECB) President Christine Lagarde on Thursday, and the CPI in the Eurozone on Friday will be monitored.

Next week in Asia, the PPI in Japan on Monday, growth, industrial production, and capacity utilization rate in Japan, and industrial production and retail sales in China on Wednesday, and the foreign trade balance in Japan on Thursday will be monitored.

Domestic focus will be on the balance of payments

Next week on the domestic data agenda, the balance of payments on Monday, the budget balance on Wednesday, housing sales and the housing price index on Thursday, and the CBRT market participants survey on Friday will be monitored.

News Source: 12punto