Global collapse hits BIST: Stock market opened, crashed, and triggered circuit breakers

As declines accelerated in US stock markets, Asian markets, which began trading in the early hours, also experienced sharp drops. The price of the cryptocurrency Bitcoin fell by 12.5 percent in 24 hours due to growing recession concerns. Ethereum lost 19.3 percent of its value in the last 24 hours, falling to the 2,346 dollar level. Borsa Istanbul started the week with a 6.7 percent decline. A circuit breaker was applied for the second time in the stock market.

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Global collapse hits BIST: Stock market opened, crashed, and triggered circuit breakers

Sharp sell-offs were seen in US stock markets and Asian markets that opened early.

NIKKEI INDEX HAS NOT FALLEN LIKE THIS SINCE 1987

As reported by Hürriyet, the Nikkei index in Japan experienced its worst loss since 1987, with a decline of over 8 percent. The decline in the Nikkei index continues due to concerns about the US economy. The largest single-day collapse in the Nikkei index was a 3,836-point or 14.9 percent drop on the day called "Black Monday" in October 1987. A circuit breaker was triggered in Japan's Nikkei 225 futures, and trading was halted. The Nikkei index in Japan fell below the 33,000 level for the first time since January 4.

BOJ ALSO HAS AN IMPACT

Stock prices in Tokyo have been falling since the Bank of Japan raised its benchmark interest rate on Wednesday.

SHARP DECLINE IN CRYPTOCURRENCIES TOO

The price of the cryptocurrency Bitcoin fell below 54,000 dollars due to concerns that the US economy is heading toward a recession.

According to data from the analysis firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, decreased by more than 14 percent in 24 hours, falling to 1 trillion 840 billion dollars.

As reported by AA, analysts point out that recession fears arising from data released in the US are affecting cryptocurrency prices.

The Institute for Supply Management's (ISM) manufacturing Purchasing Managers' Index (PMI) fell to 46.8 in July, its lowest level in 8 months, remaining below market expectations.

Analysts stated that the "hawkish" stance of the Bank of Japan and the subsequent decline in the Nikkei 225 index also played an important role in the developments in the market.

12.5 PERCENT DROP IN BITCOIN

As of 08:45, Bitcoin, which experienced a 12.5 percent drop in its price in the last 24 hours, fell to the 53,230 dollar level.

Ethereum, which ranks second in terms of market value, lost 19.3 percent of its value in the last 24 hours, falling to the 2,346 dollar level.

CIRCUIT BREAKER APPLIED FOR THE SECOND TIME IN THE STOCK MARKET

In Borsa Istanbul, the BIST 100 index started the week with a 6.72 percent decline at 9,769.69 points.

An index-based circuit breaker was applied. After trading resumed, the decline reached 7.07 percent, and the circuit breaker was applied for the second time.

The statement made by Borsa Istanbul regarding the activation of the Index-Based Circuit Breaker System was published on the Public Disclosure Platform (KAP).

The statement noted the following:

"As of 09:55:22, the index-based circuit breaker has been triggered, and trading has been temporarily halted in all order books in the Equity Market, in contracts based on Equities and Equity Indices in the Derivatives Market (VIOP), and in the Debt Securities Market (BAP) Equity Repo Market. For equities subject to the continuous trading method in the Equity Market, real estate investment funds, venture capital investment funds, real estate certificates, and commodity certificates, single-price order collection will take place at 10:20:00, matching will occur at 10:25, and trading will resume with continuous trading starting from 10:30. For equities subject to the single-price trading method in the Equity Market, single-price order collection will take place at 10:20, and the session will continue with its normal flow starting from 10:30. Trading in warrants, certificates, ETFs, and new share acquisition right coupons will begin with continuous trading starting from 10:30. Trading in contracts based on Equities and Equity Indices in VIOP and in the BAP Equity Repo Market will resume at 10:30. The order collection process is randomly terminated within 30 seconds after the specified time."

The Index-Based Circuit Breaker System in Borsa Istanbul is triggered when there are instantaneous losses of 5 percent and 7 percent in the index, and it is used to minimize the damage to investors from panic selling.

News Source: 12punto