Selling pressure in global markets and new steps in the Turkish economy

Ongoing inflationary pressures in economies and tight monetary policies of central banks led to sharp sales in global bond markets. The US 10-year bond interest rate reached 5.34 percent and the 30-year bond interest rate reached its highest level since 2002 with 5.69 percent. While the dollar index, supported by increasing bond yields, reached 102.2, an ounce of gold lost 3.4 percent of its value and fell to 4,141 dollars.

While the September non-farm employment data in the USA remained below expectations with an increase of 29 thousand, unemployment rose to 4.2 percent. This development reduced the probability of the Fed raising interest rates in October to 23 percent. On the energy front, despite the decision of the G7 and the USA to release 100 million barrels of diesel and oil from reserves, Brent oil completed the week with an increase of 3.5 percent at $ 102.3 due to geopolitical risks. While Wall Street closed the week with losses in Dow Jones and S&P 500, Nasdaq diverged horizontally and positively.

NEGATIVE COURSE IN EUROPE AND ASIA

Increasing energy costs in Europe and the increase in Eurozone inflation to 3.8 percent accelerated the selling pressure. While bond interest rates in France and England reached historical peaks, public debt concerns hit the stock markets; There were sharp losses in value in the UK (FTSE 100), Germany (DAX 40) and France (CAC 40).

In Asian markets, rising oil and bond interest rates reduced risk appetite. Japan's 10-year bond interest reached 3.11 percent, the highest level since 1995. While the People's Bank of China (PBoC) cut interest rates to support the economy, all Asian indices closed the week in negatives, except for the Japanese stock market, which found support from technology stocks.

STEPS OF ECONOMY MANAGEMENT

Due to the effect of the global sales wave, Borsa Istanbul (BIST 100) experienced a 4.88 percent decrease on a weekly basis and the index closed at 12,270.18 points. Dollar/TL was balanced at 49.1285.

The Capital Markets Board (CMB) announced that interim payments will be made to investors for problematic funds in the liquidation process. President Recep Tayyip Erdoğan emphasized that this problem in the fund market was resolved fairly and quickly; Minister of Treasury and Finance Mehmet Şimşek stated that the problem was stopped from spreading throughout the system by rapid intervention in the process. In addition, the CBRT increased the growth limit for SME loans from 4.5 percent to 5 percent and reduced the blocked facility rates in TL required reserves.

NEXT WEEK'S AGENDA

The main focus of domestic markets next week will be the September inflation data to be announced on Monday. Economists' expectation is that monthly inflation will increase by 2.18 percent and annual inflation will decrease to 30.16 percent. In global markets, service sector PMI and Fed meeting minutes in the USA, ECB minutes in Europe and Japan data in Asia will be closely watched.