- BIST10011,165+0.13%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD4,058.90-0.39%
- INTEREST36.00%-1.00
- BITCOIN81,357+0.69%
- October 28, 202617°
- BIST10011,165+0.13%
- USD49.79+0.05%
- EUR55.52-0.41%
- GOLD4,058.90-0.39%
- INTEREST36.00%-1.00
- BITCOIN81,357+0.69%
- October 28, 202617°
Global markets focus on Fed rate decision and tech stocks
Investors in global markets are focused on the Fed’s interest rate decision due today, while optimism about artificial intelligence companies supported technology stocks. Brent crude rose 1.4% to $115.5 a barrel, while gold fell 0.7% to $4,033 an ounce.
Optimism surrounding artificial intelligence supported technology stocks in global markets, while investors focused on the Fed’s interest rate decision due today. The Fed is expected to leave its policy rate unchanged.
Reports that U.S.-based technology company Nvidia will invest $3 billion in Meta increased demand for technology stocks. Investors are also looking for signs in the earnings reports expected from Alphabet and Microsoft after the close of U.S. markets as to whether heavy spending on artificial intelligence infrastructure is translating into lasting revenue growth.
Oil rises, Treasury yield exceeds 5%
Supply concerns increased following reports that Iran-backed Houthis in Yemen had attacked a refinery in Saudi Arabia. December-dated Brent crude rose 1.4% to $115.5 a barrel.
The absence of concrete progress toward an agreement between the United States and Iran was also among the factors supporting the rise in oil prices. The increase in oil prices intensified inflation concerns and expectations that interest rates could remain high for an extended period, pushing the U.S. 10-year Treasury yield back above 5%.
The dollar index rose to 102.4, its highest level since October 14, while gold fell 0.7% to $4,033 an ounce. The rise in technology stocks contributed to investors moving away from safe-haven assets and to the increase in Treasury yields.
Israeli elections also in focus
With approximately 16.8% of the votes counted in Israel’s general election, the race between the bloc led by Prime Minister Benjamin Netanyahu and the opposition remained close. Netanyahu’s bloc received 50.4% of the counted votes, while the other opposition parties received 49.6%.
The results of Israel’s election could affect the geopolitical outlook in the Middle East and the direction of markets.
New York stocks rise on technology shares
New York stocks ended the previous session higher, driven by gains in shares of companies linked to artificial intelligence. Nvidia shares rose 1%, Advanced Micro Devices shares gained 5.5%, and Micron Technology shares increased 2.8%.
U.S. durable goods orders rose 1.8% month on month in September. The Conference Board Consumer Confidence Index also rose to 91.7 in October, exceeding expectations. U.S. stock index futures started the new day mixed.
ECB decision watched in European markets
European stocks rose, except in the United Kingdom, supported by the previous decline in oil prices. Germany’s DAX 40 gained 0.71%, France’s CAC 40 rose 0.51%, and Italy’s FTSE MIB 30 increased 0.9%. The United Kingdom’s FTSE 100 index fell 0.75%.
France’s consumer confidence index fell 5 points month on month to 80 in October. This was the lowest level recorded since June 2013.
Increasing competition from Chinese automotive companies and rising production costs added to pressure on the profitability of German automakers. Mercedes-Benz shares fell 3.9% after the company revised down its profit expectations for 2026.
HSBC’s third-quarter pretax profit rose 32% year on year to $9.6 billion. However, its shares fell 5.4% after the bank left its year-end forecasts unchanged, contributing to losses in the United Kingdom’s stock market.
Rising energy costs in Europe and growing uncertainty over the growth outlook are making it more difficult for the European Central Bank to balance its goals of fighting inflation and supporting economic activity. The ECB is expected to keep interest rates unchanged at its meeting tomorrow and raise them in December.
Technology stocks stand out in Asian markets
The rise in technology stocks on the New York Stock Exchange spread to Asian markets. South Korea-based SK Hynix’s operating profit rose 632.1% in the third quarter to 83.3 trillion won, while its revenue increased 327.9% to 104.6 trillion won.
SK Hynix shares rose 10.1%, while Samsung Electronics shares gained 8.3%. Near the close, the Nikkei 225 was up 1.2%, the Kospi 6.3%, the Shanghai Composite 0.7%, and the Hang Seng 0.4%.
Borsa Istanbul closes flat
The BIST 100 index on Borsa Istanbul ended the day broadly flat at 11,151.03 points. The October futures contract based on the BIST 30 index gained 0.27% in the evening session compared with the regular-session close.
Dollar/Türkiye lira ended the previous day up 0.10% at 49.8067 and traded at 49.8350 at the opening of the interbank market. Fitch Ratings expects Türkiye’s debt capital market to continue growing and the total outstanding debt instruments to reach $550 billion by 2027.
All operating licenses and the authorization certificate of Tera Yatırım Menkul Değerler AŞ were revoked. A decision was made to compensate investors and gradually liquidate the company.
Vice President Cevdet Yılmaz responded to lawmakers’ questions and criticisms regarding the 2027 Central Government Budget Bill and the 2025 Central Government Final Accounts Bill before the Grand National Assembly’s Planning and Budget Commission.
Yılmaz announced that 68 billion liras had been paid to 93 funds and 71,899 accounts as of October 23. Under the extraordinary liquidation process, payments of up to 1 million liras will begin on Friday through İş Bankası and Ziraat Bankası; payments will be made from the lowest amounts to the highest.
Domestic markets will follow the foreign trade balance and the Services Producer Price Index, while international markets will watch the Fed’s interest rate decision. In the BIST 100 index, 11,300 and 11,400 points are being monitored as resistance levels, and 11,000 and 10,900 points as support levels.
Domestic markets will have a half-day session today because it is the eve of Republic Day on October 29. The Fed’s interest rate decision will be watched at 21:00, followed by Fed Chair Kevin Warsh’s press conference at 21:30.
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