Volatility has increased in global markets due to recession fears. There are no concrete developments and news streams that will increase concerns. Although the recession has been a foregone conclusion for a while, discussions have begun on the damage the recession will cause. Furthermore, the volatility of energy and commodity costs can cause economic shocks and liquidity constraints are factors that increase the stress on the markets.
Within these expectations, global markets had an active day yesterday. While the dollar index rose to the level of 106.78, it reached its highest level since 2002; The euro / dollar fell as low as 1.0235 and tested the lowest level in the last 20 years. This morning the pair is at 1.0240.
The outlook across Asia is bad this morning. Losses in US futures indices are limited, while European futures indices are in the foreground after yesterday’s heavy losses.
In an effort to compensate for oil losses
After employees from the energy sector in Norway announced they would go on strike, it was interesting to note that oil fell sharply despite growing supply-side concerns.
The closest barrel futures price of Brent crude oil rose 1.4% to $ 104.18 a barrel, taking some of its losses in early trades, after falling 9.5% yesterday to its lowest level in. two and a half months due to fears of a slowdown in global economic demand.
Crude oil prices are rising nearly 1% as China’s energy consumption picks up. The barrel price of West Texas Intermediate crude oil, which fell to its lowest level since April yesterday with an 8% drop, rose close to 1% today.
Spot gold plummeted more than 2% every day and hit a 6-month low at $ 1,763. Today there is a horizontal movement to the level of 1765 in the first transactions.
The dollar could not stay below 17
The rise in the dollar index negatively affects the currencies of developing countries. The dollar / TL also climbed back above 17. It largely reversed the decline it experienced following the BRSA’s step. This morning we saw 17.10 levels in early trades. In the event of a stay above 5 pm, 5:20 pm will be seen as resistance. CDS are trading at level 853.
Stock market clearing time
After the buyer’s opening yesterday, the BIST100 index, which rose to 2426 levels, moved towards close and the close was achieved at 2371.25 with a depreciation of 1.44 percent due to sales. . BIST100 started the day at 2,389 points with a 0.75% increase. Today is the last day for investors in Istanbul Stock Exchange who want to return to cash before Eid al-Adha. On the Istanbul Stock Exchange, which on Friday will take a 4.5-day holiday due to Eid al-Adha, the clearing of the transactions to be carried out today will be Wednesday 13 July.
Watch the Fed minutes
All eyes will be on the minutes of the June 14-15 FOMC meeting of the US Federal Reserve (Fed). At this meeting, the Fed made its strongest rate hike since 1994, above expectations, at 75 basis points, and the members provided a signal of a 175 basis point increase through the end of the year. It is estimated that the minutes will contain statements that inflation remains high due to the epidemic, rising energy prices and imbalances between supply and demand.
The eyes of the markets, on the other hand, are on Norway. The Norwegian government intervened in the strike launched by oil and gas workers.