How did global markets start the day?

In the U.S. markets opening today, financial results from major companies such as Nvidia, Walmart, Home Depot, and Rio Tinto will be monitored throughout the week.

Analysts noted that pricing has become more difficult following last week's U.S. inflation data, which exceeded expectations, and drew attention to the volatility in artificial intelligence-related technology stocks.

Stating that clues regarding the bank's future path will be sought in the minutes of the Fed Federal Open Market Committee (FOMC) meeting to be released tomorrow, analysts noted that the forward guidance of Fed officials remains in the focus of investors.

In money markets, while it is considered certain that the Fed will keep the policy rate unchanged in March, it is priced in that there is a 65 percent probability the bank will not change the policy rate in May either. It is projected that the Fed will begin interest rate cuts in June with a 75 percent probability.

Meanwhile, U.S. bank Capital One announced it would acquire financial services company Discover in an all-stock transaction valued at 35.3 billion dollars, while the U.S. government reported it would provide 1.5 billion dollars in funding to GlobalFoundries for chip production to increase the country's supply chain resilience.

The U.S. 10-year bond yield is at 4.3 percent, while the dollar index is trading at 104.4, up 0.1 percent. The ounce price of gold, which has extended its upward trend for the fourth consecutive trading day, is currently finding buyers at 2,019 dollars, 0.1 percent above its previous close.

While the tension in the Middle East is being closely followed, the barrel price of Brent crude is also trading at 82.8 dollars, up 0.1 percent, extending its upward trend for the fourth consecutive trading day.

EUROZONE WAS MIXED YESTERDAY

While there was no trading on the New York Stock Exchange yesterday, index futures started the new day with a negative trend. While a mixed trend prevailed in European stock markets yesterday, eyes today are turned to the Eurozone's balance of payments data.

Analysts stated that U.S. equity markets were closed yesterday due to a holiday, which is why trading volumes in European stock markets remained low.

On the other hand, yesterday, the Deutsche Bundesbank stated that external demand is weakening, consumers are cautious in their spending, and rising financing costs may continue to limit investments, reporting that the German economy could enter a technical recession by showing a contraction in the first quarter of this year following the last quarter of last year.

On the Russian side, Russian President Vladimir Putin announced that he had approved the sale of HSBC bank's subsidiary in Russia to Expobank, while it was noted that the net profit of Russia's largest oil company, Rosneft, increased by 47 percent in 2023 compared to the previous year, rising to 1.3 trillion rubles (approximately 14 billion dollars).

Yesterday, the FTSE 100 index in the UK rose by 0.22 percent, while the CAC 40 index in France followed a flat course. The DAX 40 index in Germany lost 0.15 percent and the MIB 30 index in Italy lost 0.22 percent. Index futures in Europe started the new day with a mixed trend.

While a negative trend stands out in Asian equity markets, the People's Bank of China (PBoC) lowered the 5-year loan prime rate (LPR), which is accepted as a reference for real estate loans.

In order to revive the real estate market in the country, the PBoC cut the 5-year loan prime rate, the benchmark interest rate for housing loans in monthly fixing, by more than expectations.

The PBoC lowered the five-year loan interest rate by 25 basis points from 4.20 percent to 3.95 percent, while the bank kept the one-year loan interest rate unchanged at 3.45 percent. Markets were expecting the interest rate cut in question to be 10 basis points.

Analysts stated that volatility in equity markets increased following the interest rate decision, noting that the increase in the trading volume of various exchange-traded funds in the country provided a clue that state-backed funds continue to support the market.

Near the close, the Nikkei 225 index in Japan decreased by 0.3 percent, the Hang Seng index in Hong Kong by 0.4 percent, the Kospi index in South Korea by 1.3 percent, and the Shanghai composite index in China by 0.2 percent.

In the domestic market, the BIST 100 index on Borsa Istanbul, which followed a selling trend yesterday, completed the day with a 0.58 percent loss at 9,196.41 points. The index carried its record high level to 9,404.11 points.

The Dollar/TL, which followed a flat course yesterday and completed the day just above its previous close at 30.8466, is trading at 30.8790 at the opening of the interbank market today.

Analysts noted that the consumer confidence index and international investment position will be followed domestically today, and the balance of payments in the Eurozone and leading index data in the U.S. will be followed abroad, noting that from a technical perspective, the 9,300 and 9,400 levels are resistance and the 9,100 and 9,000 levels are support for the BIST 100 index.

News Source: AA