Global markets in holiday mood

The year 2023, which saw hawkish steps in the first half of the year as part of the fight against inflation, is concluding with the strengthening of dovish expectations and forecasts that interest rate cuts could be initiated by the US Federal Reserve (Fed) in March next year.

While it is estimated in money market pricing that there is an 85 percent probability that the Fed will begin lowering the policy rate in March, signals from macroeconomic data are expected to be influential on the bank's steps.

As inflation concerns lose strength, demand for bonds has increased, and the US 10-year bond yield, after seeing a 16-year high of 5.02 percent during the year, stands at 3.90 percent in the final week of the year, just above last year's closing level.

The ounce price of gold is also seen benefiting from the buying trend in bond markets and is preparing to make its highest annual close of all time. The ounce price of gold, which finished last week at 2,053 dollars, is moving in a narrow band on the first trading day of the new week due to the London and New York stock exchanges being closed.

While the cryptocurrency Bitcoin is preparing to finish the year with a return of around 160 percent, the decision of the US Securities and Exchange Commission (SEC) regarding cryptocurrency investment funds is expected to increase volatility in cryptocurrencies.

On the other hand, while developments in the Middle East continue to be followed closely, the Danish shipping company Maersk reported that it is preparing to resume shipping operations in the Red Sea and the Gulf of Aden.

On the New York Stock Exchange on Friday, the Nasdaq index gained 0.19 percent and the S&P 500 index gained 0.17 percent, while the Dow Jones index recorded an increase of 0.87 percent. Today, the New York Stock Exchange will be closed due to the holiday.

While a mixed trend stood out on European stock exchanges on the last trading day of last week, no trading will take place across the region today due to the Christmas holiday.

On Friday, the MIB 30 index in Italy rose 0.26 percent, the FTSE 100 index in the UK rose 0.04 percent, and the CAC 40 index in France rose 0.11 percent, while the DAX 40 index in Germany remained flat.

In Asian equity markets, while trading did not take place in most of the region's markets on the first trading day of the week, the fact that the open Chinese and Japanese markets are quite thin is noteworthy.

Near the close, the Nikkei 225 index in Japan rose 0.3 percent, while the Shanghai composite index in China remains flat.

Domestically, the BIST 100 index on Borsa Istanbul, which followed a sales-weighted trend on Friday, finished the day with a 2.67 percent loss at 7,557.56 points.

The Dollar/TL, after closing Friday at 29.2282, 0.3 percent above its previous close, is trading at the 29.1420 level at the opening of the interbank market today.

Analysts stated that the financial services confidence index data will be followed domestically today, and noted that from a technical perspective, 7,500 and 7,400 points are support levels for the BIST 100 index, while 7,600 and 7,700 levels are resistance positions.