Global markets follow a positive trend after the Fed

The Fed kept the policy rate unchanged at 5.25-5.50 percent in line with expectations, while the statement from the bank reported that recent indicators suggest economic activity grew at a "strong" pace in the third quarter.

In the press conference held after the bank's policy decision, Fed Chair Jerome Powell emphasized that they are committed to bringing inflation down to the 2 percent target, and explained that they will make decisions regarding the scope of additional monetary policy tightening and how long policy will remain restrictive based on incoming data and the evolving outlook and risks.

Stating that they are monitoring the rise in long-term bond yields and that this situation has contributed to the tightening of financial conditions since the summer, Powell expressed that persistent changes in financial conditions could have implications for the path of monetary policy.

Powell stated that tight financial conditions stemming from factors such as a strong dollar and lower stock prices, in addition to the rise in long-term bond yields, could be important for future interest rate decisions.

Fed Chair Powell said they are not yet confident that monetary policy is sufficiently restrictive.

On the macroeconomic data front, private sector employment in the US increased by 113 thousand in October, below market expectations. Last month, annual wage growth was 5.7 percent, the lowest level since October 2021.

While the average interest rate for 30-year mortgage loans in the country recorded a decline for the first time after a 7-week rise, mortgage applications continued to show a decline.

The number of JOLTS job openings in the US rose to 9 million 553 thousand in September, exceeding market expectations.

The US Department of the Treasury also announced that it would sell 112 billion dollars in 3, 10, and 30-year bonds. While US 10-year treasury yields entered a downward trend following the department's borrowing announcement, the decline in bond yields approached 20 basis points after Powell's statements. The US 10-year bond yield is currently at 4.72 percent.

Analysts noted that data on the labor market to be announced today and tomorrow are being closely followed, stating that the continued tightness of labor markets in the country could affect the Fed's future policies.

The downward trend in the barrel price of Brent oil has reached three trading days, and it is at 85.3 dollars, 0.4 percent above the previous close on the new day.

The ounce price of gold is also being sold at 1,986 dollars, an increase of 0.2 percent compared to the previous close.

Apple's profitability, which is expected to announce its balance sheet in the US today, is expected to be influential on the direction of the markets.

In the New York stock market, the Dow Jones index rose 0.67 percent, the S&P 500 index 1.05 percent, and the Nasdaq index 1.64 percent. Index futures in the US also started the new day with gains.

While a buying-weighted trend stood out in European stock markets yesterday, the Bank of England's (BoE) interest rate decision has become the focus of investors today.

While it is considered certain that the bank will keep the policy rate unchanged, the signals to be received from the policy text and Andrew Bailey's speech are expected to be influential on asset prices.

The DAX 40 index in Germany rose 0.76 percent, the CAC 40 index in France 0.68 percent, the FTSE 100 index in the UK 0.28 percent, and the MIB 30 index in Italy 0.88 percent. Index futures in Europe also started the new day with gains.

While the positive trend in the US carried over to Asian stock markets on the new day, the Chinese stock market diverged negatively.

While the Japanese government announced a stronger-than-expected economic support package today, problems stemming from the real estate sector in China continue to pressure asset prices.

Near the close, the Nikkei 225 index in Japan rose 1.2 percent, the Kospi index in South Korea 1.8 percent, and the Hang Seng index in Hong Kong 0.9 percent, while the Shanghai composite index in China fell 0.2 percent.

Domestically, the BIST 100 index in Borsa Istanbul, which followed a volatile course yesterday, completed the day with a 0.19 percent increase at 7,528.57 points, while today's focus turned to the Inflation Report presentation to be made by Central Bank of the Republic of Turkey (TCMB) Governor Hafize Gaye Erkan.

The Dollar/TL is trading at 28.3380 at the opening of the interbank market today, after completing the day at 28.3231 with a 0.1 percent increase yesterday.

Analysts stated that weekly money and bank statistics domestically, and the BoE's interest rate decision, as well as the intense data agenda led by the manufacturing industry Purchasing Managers' Index (PMI) worldwide and factory orders in the US, and the news flow regarding the Israel-Palestine conflict will be followed abroad, noting that from a technical perspective, the 7,480 and 7,400 levels are support and the 7,600 point level is resistance for the BIST 100 index.

News Source: 12punto