GLOBAL MARKETS ARE POSITIVE
While a positive trend was observed in global markets, led by technology stocks, despite the ongoing uncertainty regarding the timing of the US Federal Reserve’s (Fed) interest rate cut, today all eyes turned to the expected balance sheets of major companies, especially IBM, Boeing and Meta.
While there is still uncertainty about when the Fed will start reducing interest rates, the data announced yesterday in the country fell below expectations and gave weak signals regarding economic activity, increasing optimism that the bank will start reducing interest rates within the year.
According to the data announced yesterday in the country, the manufacturing industry Purchasing Managers Index (PMI) decreased by 2 points monthly in April to 49.9, the lowest level in 4 months, while the service sector PMI decreased by 0.8 points to 50.9 in the same period.
While the intensifying balance sheet season in the USA is also on the agenda of investors, the financial results of large companies expected to be announced this week are expected to increase volatility in the markets.
Analysts stated that company and share-based movements may come to the fore in the equity markets, and that risk appetite has increased, especially with the expectations that technology companies will be able to announce good balance sheets.
The net profit of the US electric car manufacturer Tesla, which announced its financial results yesterday, decreased by 55 percent in the first quarter of this year compared to the same period last year, due to the impact of global falling sales and price discounts.
According to data from global technology market research firm Counterpoint, smartphone sales of US technology giant Apple in China decreased by 19.1 percent in the first quarter of this year.
On the other hand, the probability of the Fed starting to reduce interest rates in June is priced at 15 percent in money markets, 44 percent in July and 69 percent in September.
With these developments, the US 10-year bond interest is at 4.62 percent, while the dollar index is at 105.7, just below its previous closing.
The ounce price of gold, which closed the day yesterday at 2 thousand 322 dollars with a 0.2 percent decrease, is currently finding buyers at 2 thousand 327 dollars, 0.2 percent above its previous closing.
While the developments in the Middle East are also closely followed, the barrel price of Brent oil follows a horizontal course at 87.5 dollars.
Yesterday, in the New York Stock Exchange, the Nasdaq index increased by 1.59 percent, the S&P 500 index increased by 1.20 percent and the Dow Jones index increased by 0.69 percent. Index futures contracts in the USA started the new day on a positive note.
EUROPEAN EXCHANGES
While a positive trend was observed in the European stock markets yesterday, today all eyes are on the Ifo business confidence index data in Germany.
Recalling that the leading PMI data announced yesterday throughout the region gave mixed signals, analysts said that it was noteworthy that the manufacturing industry PMI data remained below expectations in the Euro Zone, Germany and the UK.
Also yesterday, the European Parliament (EP) approved new fiscal rules aimed at reducing public expenditures and budget deficits of European Union (EU) countries.
On the other hand, while the verbal guidance of bank officials regarding the steps to be taken by the European Central Bank (ECB) in the coming period continues, Mario Centeno, President of the Bank of Portugal and ECB member, stated yesterday that the bank may reduce interest rates by more than 100 basis points this year.
Yesterday, the FTSE 100 index in England increased by 0.26 percent, the MIB 30 index in Italy increased by 1.89 percent, the DAX 40 index in Germany increased by 1.58 percent and the CAC 40 index in France increased by 0.81 percent. Index futures contracts in Europe started the new day on a positive note.
The positive trend in global stock markets also carried over to Asian stock markets.
While the increasing risk appetite with the expectations that US technology giant companies will announce large profits is also effective in Asian share markets, it seems that companies operating in the field of chip technology are leading the upward trend.
JAPANESE NEW IS AT THE LOWEST LEVEL AGAINST THE DOLLAR IN 34 YEARS
On the other hand, the Japanese yen continues to hover at its lowest level in 34 years against the dollar. The dollar/yen parity is at 154.86, just above its previous close.
Near the close, the Nikkei 225 index in Japan increased by 2.3 percent, the Hang Seng index in Hong Kong increased by 1.7 percent, the Kospi index in South Korea increased by 2 percent and the Shanghai composite index in China increased by 0.3 percent.
The data to follow in the markets today are as follows:
• 10.00 Türkiye, April capacity utilization rate
• 10.00 Türkiye, April real sector confidence index
• 10.00 Türkiye, short-term external debt statistics for February
• 10.00 Türkiye, February housing price index
• 11.00 Germany, April Ifo business confidence index
• 15.30 USA, March durable goods orders
