Index contract opens the day with a decline in VIOP (23.05.2024)

The June-dated index contract on the Borsa Istanbul Derivatives Market (VIOP) traded at 12,337.50 in the opening session, 0.7 percent below the previous normal session close.

Yesterday, the index contract followed a selling-weighted trend and completed the normal session at 12,420.00 points, 0.4 percent below its previous close. The index contract continued its decline in the evening session, falling 0.5 percent to 12,361.00 points.

Analysts stated that global equity markets followed a mixed trend after the minutes of the US Federal Reserve's (Fed) latest meeting indicated that the policy rate could remain at high levels for longer than expected, despite chipmaker Nvidia announcing record-level revenue. They noted that all eyes in the domestic market are now turned to the interest rate decision of the Central Bank of the Republic of Turkey (TCMB) today.

While all economists participating in the AA Finans expectation survey expect the TCMB to keep the policy rate constant at 50 percent, the median of the economists' year-end policy rate expectations was calculated as 45 percent.

On the other hand, Turkey's 5-year credit default swap (CDS) continued its downward trend, falling to 263.1 basis points, its lowest level since February 2020.

Analysts, who stated that in addition to the TCMB's interest rate decision, the consumer confidence index and weekly money and bank statistics will be monitored domestically today, while preliminary Purchasing Managers' Index (PMI) data worldwide and weekly jobless claims in the US will be followed abroad, noted that technically, 12,300 and 12,150 points are support levels for the index contract, while 12,500 and 12,600 levels are in the position of resistance.

News Source: AA