Central Bank's July interest rate decision awaited

While developments regarding the election process in the US remain the focus of investors, the earnings season is also intensifying.

Following US President Joe Biden's withdrawal from the presidential race, Kamala Harris's nomination has become almost certain, and Harris has raised more than 80 million dollars in donations in 24 hours.

On the other hand, major companies such as Alphabet, Tesla, Visa, Louis Vuitton, Coca-Cola, General Electric, and Lockheed Martin are expected to announce their financial results today.

Analysts stated that these earnings reports could increase stock and sector-based volatility, reminding that Verizon's shares lost more than 6 percent in value yesterday after its financial results failed to meet expectations.

While selling pressure continues in bond and commodity markets, the US 10-year bond yield is at 4.24 percent in the new day, following its close at 4.26 percent yesterday.

DECLINE IN COPPER CONTINUES

The ounce price of gold is trading at 2,394 dollars, 0.1 percent below its previous close, while the barrel price of Brent crude oil is trading at 81.5 dollars, parallel to its previous close.

Copper, which has been on a downward trend for 7 consecutive days, is finding buyers at 4.18 dollars per pound.

On the New York Stock Exchange yesterday, the Nasdaq index rose 1.58 percent, the S&P 500 index 1.08 percent, and the Dow Jones index 0.32 percent. Index futures in the US started the new day with a decline.

While a buying-weighted trend was observed in European stock markets yesterday, expectations that the European Central Bank (ECB) could make at least two interest rate cuts this year remain strong.

ECB member Peter Kazimir stated in his remarks yesterday that the pricing in money markets was not entirely wrong, saying, "We are moving towards our inflation target, but we have not reached it yet."

Yesterday, the FTSE 100 index in the UK rose 0.53 percent, the MIB 30 index in Italy 1.17 percent, the CAC 40 index in France 1.16 percent, and the DAX 40 index in Germany 1.29 percent. Index futures in Europe started the new day with a mixed trend.

Asian stock markets are following a mixed course in the new day.

Analysts stated that the election process in the US has increased uncertainty, especially in Asian markets, and that developments on the subject are being closely monitored.

Stating that the concern that trade wars could restart if Trump is elected president negatively affects investors' risk appetite, analysts noted that recession concerns in the Chinese economy also make pricing difficult.

On the other hand, while the dollar/yen parity continues to decline ahead of the monetary policy decisions to be taken by the Bank of Japan (BoJ) next week, the parity is at 156.3 with a 0.5 percent decrease in the new day. In money market pricing, it is predicted that there is a 44 percent probability that the BoJ will raise interest rates.

Near the close, the Nikkei 225 index in Japan moved horizontally, while the Kospi index in South Korea rose 0.6 percent. The Shanghai composite index in China fell 0.8 percent and the Hang Seng index in Hong Kong fell 0.5 percent.

EXPECTATIONS ARE FOR INTEREST RATES TO REMAIN UNCHANGED

In the Borsa Istanbul, which moved in a narrow band yesterday, the BIST 100 index completed the day with a 0.15 percent increase compared to the previous close at 11,172.75 points, breaking a closing record.

While eyes are turned to the TCMB's monetary policy decisions domestically today, analysts stated that the signals to be received from the monetary policy text could increase volatility in the markets.

All economists participating in the AA Finance expectation survey predicted that the TCMB would keep the policy rate unchanged.

The dollar/TL, after completing the day at 32.9105, 0.3 percent below its previous close, following a selling-weighted trend yesterday, is trading at 32.9450 at the opening of the interbank market today.

Analysts noted that in addition to the TCMB's interest rate decision domestically today, the consumer confidence index and existing home sales in the US abroad will be followed, and noted that from a technical perspective, 11,250 and 11,350 points are resistance, and 11,000 and 10,900 levels are support for the BIST 100 index.

The data to be followed in the markets today are as follows:

10.00 Türkiye, July consumer confidence index

14.00 Türkiye, July TCMB interest rate decision

17.00 Eurozone, July consumer confidence index

17.00 US, June existing home sales

News Source: AA