- BIST10011,117-0.92%
- USD49.65+0.05%
- EUR55.60-0.19%
- GOLD4,007.90-1.29%
- INTEREST36.00%-1.00
- BITCOIN80,433-0.80%
- October 24, 202614°
- BIST10011,117-0.92%
- USD49.65+0.05%
- EUR55.60-0.19%
- GOLD4,007.90-1.29%
- INTEREST36.00%-1.00
- BITCOIN80,433-0.80%
- October 24, 202614°
Global markets focus on oil and tech pressure ahead of rate decisions
Geopolitical tensions and high oil prices have heightened inflation concerns in global markets, while fears that high interest rates could weigh on technology and artificial intelligence investments have come to the fore. Brent crude ended the week at $116.9 a barrel, up 6.5%, while the Borsa Istanbul 100 index fell 5.16%.
Global markets are awaiting interest rate decisions from central banks next week, while concerns that geopolitical tensions in the Middle East could rise again and higher transportation costs influenced pricing.
Renewed conflict risks and higher transportation costs pushed oil prices higher, with December-dated Brent crude approaching $117 a barrel. Brent crude ended the week at $116.9 a barrel, up 6.5%.
Expectations that rising energy costs could intensify inflationary pressures kept forecasts for central bank monetary policy hawkish. Concerns also grew that high borrowing costs could negatively affect artificial intelligence investments, a major driver of economic growth.
Technology stocks face selling pressure
Technology stocks, particularly chipmakers, faced selling pressure throughout the week. The total market capitalization of global stock markets fell by more than $1 trillion.
Analysts said that although artificial intelligence investments have reached high costs, it remains uncertain how quickly and to what extent this spending will translate into profits. This led to volatility, particularly in the shares of semiconductor, data center and cloud computing companies.
Rising borrowing costs have made it more expensive to build data centers and expand capacity, increased interest expenses for companies financing their investments through debt, and reduced the economic appeal of new projects.
US markets ended mixed
US equity markets ended the week mixed. The S&P 500 fell 0.47% and the Nasdaq declined 0.71%, while the Dow Jones rose 0.41%.
Meta's revenue in the July-September period of 2026 rose 26% from the same period last year to $64.6 billion. The company's net profit also increased 264% to $9.9 billion.
Tesla's net profit, however, fell 43% during the same period to $787 million. The company's revenue was recorded at $28 billion.
Next week in the US, markets will track growth and personal consumption expenditures data, as well as the earnings reports of Amazon, Microsoft and Alphabet. The Fed is expected to leave its policy rate unchanged.
The spread of declines in technology and artificial intelligence-related stocks pushed investors toward safe-haven assets. The US 10-year Treasury yield ended the week at 5%, down 8 basis points, while the dollar index was flat at 101.8.
Gold fell 4.1% on a weekly basis to $3,995 an ounce, dropping below $4,000 for the first time in nearly three months.
European stocks decline
European stocks traded lower amid geopolitical concerns and fears that events in France could spread across the region. Growing pressure on France's public finances from street unrest deepened selling in the country's government bonds.
France's 10-year bond yield rose to 5.07%, its highest level since 2002. For the first time since 2013, it exceeded the yield on 10-year US Treasury bonds.
On a weekly basis, the FTSE 100 fell 1.76%, the DAX 1.84%, the CAC 40 2.19% and the MIB 30 2.60%. The European Central Bank is expected to leave its three key policy rates unchanged next week, while the possibility of rate hikes at subsequent meetings remained on the agenda due to high oil prices and inflation risks.
Germany's Producer Price Index rose 1.9% month-on-month and 6.7% year-on-year in September. SAP's third-quarter revenue exceeded €10 billion, while the company forecast revenue of between €36.3 billion and €36.8 billion for 2026.
Asian markets fall, led by semiconductor stocks
Asian stock markets also declined amid geopolitical tensions, energy costs and concerns about high inflation. The rise in oil prices is expected to increase costs in economies dependent on energy imports, while the possibility that interest rates will remain high for an extended period is expected to weigh on growth-focused technology stocks.
Annual inflation in Japan stood at 2.1% in September, in line with expectations. Core inflation rose above 2% for the first time in nine months. Although the country's exports increased 16.7%, they remained below expectations and slowed from August.
On a weekly basis, the Kospi fell 2.08%, the Hang Seng 4.52%, the Nikkei 225 4.03% and the Shanghai Composite Index 0.69%. The Bank of Japan is expected to leave its policy rate unchanged next week.
Türkiye cuts policy rate to 36%
The BIST 100 index on Borsa Istanbul ended the week at 11,116.99 points, down 5.16%. The Central Bank of the Republic of Türkiye cut its one-week repo auction rate by 100 basis points to 36%.
The central bank cut its overnight lending rate from 40% to 39% and its overnight borrowing rate from 35.5% to 34.5%. The policy rate was reduced for the first time in five meetings following the January meeting.
A bill containing regulations on certain investment funds ordered to be liquidated was also adopted by the General Assembly of the Grand National Assembly of Türkiye. Under the regulation, seizure orders may be issued in investigations conducted over acts linked to the funds, in accordance with the provisions of the Code of Criminal Procedure.
The Capital Markets Board will notify the Savings Deposit Insurance Fund of the amount of damage or loss in the funds, the responsible individuals and legal entities, and the amounts for which they are responsible, taking into account the liquidation procedures and the results of audits and investigations.
After mandatory expenses are deducted, the amounts accumulated in the recovery account will be transferred to the Investor Compensation Center for payment to the body responsible for the liquidation or, if the liquidation has been completed, to the fund shareholders. Payments will be made in proportion to the ownership of participation units.
The dollar/TL exchange rate ended the week at 49.6940, up 0.4% from the previous weekly close. Domestic markets will track the unemployment rate and foreign trade balance data next week.
Domestic markets will operate for half a day on Wednesday, October 28, and will be closed on Thursday, October 29, for Republic Day.
Source: Anadolu Ajansı
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