Global markets start Fed week with mixed performance

Global markets began the week with a mixed performance ahead of the US Federal Reserve's (Fed) monetary policy decisions on Wednesday, with concerns that Israel's ground operation in Gaza could escalate the conflict into wider regions influencing the trend.

While developments in the Israel-Palestine conflict remain at the center of market focus, the Fed's decisions on Wednesday will be closely monitored by investors following a series of macroeconomic data in the US that came in above expectations.

In money market pricing, it is considered a certainty that the bank will keep its policy rate unchanged this week, while forecasts for the December and January meetings have begun to change, albeit to a limited extent.

Analysts noted that data from the employment report to be released on Friday, in particular, could influence market pricing, stating that the Fed has not yet achieved the desired results despite the ultra-hawkish steps it has taken to cool the economy.

The ounce price of gold closed above $2,000 for the first time since May 15 on Friday due to news stemming from the Israel-Palestine conflict, and is trading at $2,002 on the first trading day of the week, down 0.2 percent from its previous close. The barrel price of Brent crude is trading at $88.1, down 0.7 percent.

On Friday, the Dow Jones index fell 1.12 percent and the S&P 500 index fell 0.48 percent on the New York Stock Exchange, while the Nasdaq index rose 0.38 percent. Index futures in the US started the new week with gains.

While a sell-heavy trend prevailed in European stock markets on Friday, the Bank of England's (BoE) monetary policy decisions on Thursday have become the focus of investors this week.

While it is considered a certainty in money market pricing that the bank will keep its policy rate unchanged, it is anticipated that the policy statement and the remarks of BoE Governor Andrew Bailey will influence asset prices.

On Friday, the DAX 40 index in Germany fell 0.30 percent, the CAC 40 index in France fell 1.36 percent, the FTSE 100 index in the UK fell 0.86 percent, and the MIB 30 index in Italy fell 0.80 percent. Index futures in Europe started the week with losses.

Asian stock markets started the week with a mixed performance, while the perception that the company has gained time following the postponement of the hearing regarding Evergrande's debt restructuring in China to December is positively affecting the markets.

The Bank of Japan's (BoJ) monetary policy decisions tomorrow are in the focus of the markets.

Analysts noted that news flow in the Japanese press suggesting that the BoJ might make changes to its yield curve control range has increased the importance of tomorrow's meeting, stating that a possible change could affect asset prices, particularly in bond markets.

Near the close, the Nikkei 225 index in Japan fell 1.1 percent and the Hang Seng index in Hong Kong fell 0.4 percent, while the Kospi index in South Korea and the Shanghai composite index in China rose 0.1 percent.

Domestically, the BIST 100 index at Borsa Istanbul, which followed a sell-heavy trend on Friday, completed the day at 7,706.41 points with a 0.58 percent increase.

The Dollar/TL, after completing Friday with a flat trend at 28.1737, is trading at the 28.2580 level at the opening of the interbank market today.

Analysts stated that the economic confidence index domestically, and growth and inflation in Germany, the consumer confidence index in the Eurozone, and the Dallas Fed manufacturing index data abroad, as well as news flow regarding the Israel-Palestine conflict, will be monitored today, noting that technically, the 7,830 and 8,000 levels are resistance, and 7,600 and 7,400 points are support for the BIST 100 index.