- BIST10011,694-3.12%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,192.70+0.54%
- INTEREST37.00%-1.00
- BITCOIN82,262+0.16%
- October 16, 202614°
- BIST10011,694-3.12%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,192.70+0.54%
- INTEREST37.00%-1.00
- BITCOIN82,262+0.16%
- October 16, 202614°
Global bond yields fell as tech stocks recovered and risk appetite grew
Risk appetite strengthened in global markets at the start of the new trading day as bond yields declined and technology stocks recovered; the U.S. 10-year Treasury yield fell to 5.08%. U.S. producer prices rose 1.3% month-on-month and 6.3% year-on-year in September, while the New York Stock Exchange and Asian markets posted positive performances.
Macroeconomic data from the United States, declining bond yields and a recovery in technology stocks increased investors' risk appetite in global markets.
The U.S. Producer Price Index (PPI) rose 1.3% month-on-month and 6.3% year-on-year in September. Producer inflation thus reached its highest level on a monthly basis since March 2022 and on an annual basis since December 2022.
The acceleration in PPI following consumer inflation heightened concerns over persistent price pressures. Inflation remaining above target and retail sales rising 0.8% month-on-month in September strengthened expectations that the U.S. Federal Reserve could maintain its tight monetary policy.
Bond yields declined
Technology stocks, which had fallen the previous day amid concerns that high interest rates could weigh on artificial intelligence investments, recovered after optimistic assessments on artificial intelligence by U.S. Federal Reserve Chair Kevin Warsh.
Investors' shift toward bonds amid continuing concerns over the technology sector and economic growth contributed to the decline in bond yields. The U.S. 10-year Treasury yield fell 11 basis points the previous day, from 5.19% to 5.08%, and moved sideways at the start of the new trading day.
As selling pressure in the bond market eased, the dollar index fell 0.2% to 101.9. The price of gold rose to $4,171 per ounce, just above the previous close.
Brent crude for December delivery fell 0.5% to $105.4 per barrel following reports that the International Energy Agency had reached an agreement to supply the market with more than 20 million barrels of diesel, in addition to the oil remaining from the emergency reserve release pledged in March.
The U.S. Treasury Department also added 16 individuals and 10 entities linked to Iran to its sanctions list as part of measures aimed at blocking Iran's access to the international financial system.
New York stocks rose
New York stocks posted a positive performance the previous day, supported by gains in healthcare shares despite declines in technology companies.
Nvidia shares lost about 2%, AMD shares fell 1.5% and Intel shares declined about 3%. Eli Lilly shares rose 3.5%, UnitedHealth shares gained 2.8% and Walmart shares increased 1.5%.
Barclays analysts said they had seen signs that senior executives at SpaceX and Tesla were considering a merger. Following these developments, SpaceX shares fell 2.3% and Tesla shares declined 1.3%.
The number of people filing initial applications for unemployment benefits in the United States rose to 199,000 in the week ending October 10. The figure was in line with market expectations.
The Dow Jones index gained 1.08%, the S&P 500 rose 0.33% and the Nasdaq increased 0.08%. U.S. stock index futures began the new day higher.
European and Asian stocks rose
European stocks posted gains outside Italy, supported by corporate earnings and rising healthcare shares. Germany's DAX 40 rose 0.33%, the UK's FTSE 100 gained 1.08% and France's CAC 40 increased 0.78%, while Italy's FTSE MIB fell 0.72%.
UK growth in August was 0.1% month-on-month and 2.1% year-on-year. Following the data, the pound-to-dollar exchange rate reached 1.33, its highest level since September 30. Industrial production in the euro area fell 0.5% month-on-month and 1.1% year-on-year in August.
Asian stocks rose, supported by a recovery in technology shares. SK Hynix shares rose 3.8% and Samsung Electronics shares gained 4.6% in South Korea; Kioxia shares increased 3.2% and Sony shares rose 2.4% in Japan.
The Kospi gained 3.9%, the Nikkei 225 rose 2%, the Hang Seng increased 1.1% and the Shanghai Composite Index gained 1%.
Borsa İstanbul declined
The BIST 100 index on Borsa İstanbul closed the previous day down 0.40% at 12,070.17 points. The October futures contract based on the BIST 30 index rose 0.08% in the evening session compared with the regular-session close.
The dollar/Turkish lira exchange rate ended the previous day up 0.1% at 49.4648. The exchange rate traded at 49.5106 at the opening of the interbank market, 0.1% above the previous close.
Domestic markets will follow the housing price index, the market participants survey and Standard & Poor's assessment of Türkiye. Abroad, attention will focus on remarks by Bank of England Governor Andrew Bailey, the euro area's foreign trade balance and inflation data, as well as U.S. industrial production and capacity utilization.
For the BIST 100 index, 12,000 and 11,900 points stood out as support levels, while 12,200 and 12,300 points were identified as resistance levels. Standard & Poor's is expected to announce its assessment of Türkiye after the market close, with expectations that Türkiye's credit rating will be maintained at "BB-" and its outlook at "stable."
Data to watch
- Türkiye's September housing price index
- Türkiye's October market participants survey
- The euro area's August foreign trade balance and September headline and core consumer inflation
- The New York Fed services business activity index
- U.S. September import and export price indexes
- U.S. September industrial production, manufacturing output and capacity utilization
Source: Anadolu Ajansı
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