While a positive trend is observed in the global markets, with “dovish” tone statements coming from the US Federal Reserve (Fed) officials, today in the country, the Turkey evaluation report, which is expected to be announced this evening by the international credit rating agency Standard & Poor’s (S&P), has become the focus of investors.
Continuing to seek direction in the inflation and recession dilemma, global equity markets are starting the last trading day of the week with a busy data agenda on a positive note.
Analysts stated that the “hawkish” statements coming from the Fed officials since the beginning of the week turned dovish after the data announced in the USA yesterday, and that this situation supported the risk appetite in the equity markets.
Chicago Fed President Austan Goolsbee said some analysis shows inflation will soon reach target without further policy tightening and with only a modest slowdown in growth.
The guidance in question came after it was announced that the US economy grew by 2.1 percent in the second quarter, in line with expectations, and although the number of people applying for unemployment benefits for the first time increased to 204 thousand, it was below market expectations.
Analysts reported that data on jobless claims indicates that the labor market remains strong against the Fed’s tightening monetary policy.
On the other hand, while there is very little time left until the end of the 2023 fiscal year in the USA, which will end on September 30, negotiations in Congress regarding the new budget that will finance the federal government remain in the focus of the markets.
The budget bill is criticized in the USA
While criticizing the budget bill presented by the Senate, US House of Representatives Speaker Kevin McCarthy expressed that he was confident that Congress would prevent the shutdown this weekend.
Analysts stated that there are doubts that Republican McCarthy will be able to convince his party by the end of the fiscal year.
On the other hand, International Monetary Fund (IMF) Spokesperson Julie Kozack stated that the “government shutdown” in the USA is a “preventable risk” for the country’s economy and called on the parties to reach a consensus on the continuation of the financing provided to the federal government.
Yesterday in the New York Stock Exchange, the S&P 500 index increased by 0.58 percent, the Nasdaq index increased by 0.83 percent, and the Dow Jones index gained 0.35 percent. Index futures contracts in the USA started the new day on a positive note.
Growth data of the UK economy is being followed
While a positive trend prevailed in the European stock markets, today all eyes turned to the leading inflation data in the Region and the growth data of the UK economy.
Analysts said that risk appetite increased in Germany, which is shown as Europe’s largest economy, after inflation was lower than expected.
According to data announced yesterday in Germany, the leading Consumer Price Index (CPI) increased by 4.5 percent annually in September, remaining below expectations. While annual CPI increased by 6.1 percent in the previous month, it was expected to increase by 4.6 percent this month.
Reminding that the performance of the UK economy in the second quarter will be announced today, analysts reported that a growth of 0.4 percent on an annual basis and 0.2 percent on a monthly basis is expected.
ECB President Lagarde’s guidance is in the focus of investors
Analysts stated that the guidance given by European Central Bank (ECB) President Christine Lagarde today is also in the focus of investors and said that signals can be taken from the statements about what path the bank will follow in the coming period.
Yesterday, the FTSE 100 index in England increased by 0.11 percent, the CAC 40 index in France increased by 0.63 percent, the MIB 30 index in Italy increased by 0.54 and the DAX 40 index in Germany increased by 0.70 percent. Index futures contracts in Europe started the new day on a positive note.
Asian markets remain mixed
While the mixed trend stands out in Asian share markets, there will be no transactions in the markets in China and South Korea due to holidays.
It was reported that Hui Ka Yan, the founder and Chairman of Evergrande, the construction and real estate company in China’s debt crisis, was being investigated “on suspicion of illegal activities”.
In the company’s notification to the Hong Kong Stock Exchange, it was confirmed that Hui was being taken under precaution by the judicial authorities.
“The relevant authorities have informed the company that Mr. Hui Ka Yan is being held under mandatory caution on suspicion of engaging in illegal activities,” the notice said. The statement was included.
On the Japanese side, according to the data announced today, Tokyo CPI remained below expectations with an annual increase of 2.5 percent, while inflation data for the Tokyo region is known to be a leading indicator for consumer trends across the country.
While the unemployment rate in the country remained below expectations at 2.7 percent in August, monthly leading industrial production did not change in the same period.
Near the close, the Nikkei 225 index in Japan decreased by 0.4 percent, while the Hang Seng index in Hong Kong gained 2.6 percent.