Developments regarding technology companies, expectations regarding the US Federal Reserve (Fed) and geopolitical developments continue to be decisive on the direction of global markets.
US chip manufacturer Nvidia announced that the company's chief executive (CEO) Jensen Huang resigned following reports that he had two extramarital affairs, one of which was with a woman who allegedly collected intelligence on behalf of China.
Nvidia's Board of Directors announced in a statement on November 8 that an independent investigation was launched following reports that Huang was the target of foreign intelligence activity.
With these developments, Nvidia's shares completed the week with a 12.7 percent decrease.
On the other hand, an upward trend was observed in global markets this week, with predictions that the effects of these developments on the global artificial intelligence sector may be limited.
The fact that the balance sheet of the US technology company CoreWeave came out better than expected and that Anthropic, the developer of Claude artificial intelligence models, aimed to raise up to 64.4 billion dollars by signing one of the largest public offerings in Wall Street history, also increased the risk appetite in global markets, especially on the technology side.
On the other hand, the Consumer Price Index (CPI) data announced in the USA was also in the focus of the markets this week. The country's CPI increased by 0.4 percent on a monthly basis in October, exceeding market expectations. Market expectations were for inflation to be 0.3 percent on a monthly basis. CPI increased by 0.6 percent in September.
Annual inflation data for October was not announced due to the lack of data for the same period last year. Core CPI, calculated by excluding food and energy prices, also increased by 0.3 percent on a monthly basis in October, as in September.
Market expectations were for core inflation to increase by 0.2 percent monthly. In his speech before the publication of CPI data, Fed Board Member Christopher Waller stated that he may support an interest rate increase in December.
Dallas Fed President Lorie Logan also said that considering the current outlook, there should be at least two more 25 basis point interest rate increases.
With these developments in the pricing in the money markets, it is estimated that the Fed will increase interest rates by 25 basis points in December, while it is also possible that the bank may increase interest rates by 50 basis points.
The fact that the inflation data announced in the USA was above expectations, the Fed's predictions, increasing energy costs and the expectation that interest rates will remain high for a long time due to the hawkish statements of the Fed members, supported the dollar and bond yields and increased the selling pressure on gold.
With these developments, the US 10-year bond interest increased by 29 basis points to 5.15 percent on a weekly basis. The dollar index, which tested its highest level in 19 months at 103.43, completed the week at 103.41 with an increase of 1.1 percent.
An ounce of gold, which tested the lowest level of a year at 3 thousand 852.7 dollars, completed the week at 3 thousand 878.7 dollars with a decrease of 4.6 percent.
Despite the continuing geopolitical risks originating from the Middle East, the barrel price of January term Brent oil decreased by 2.5 percent to 95.8 dollars this week, as oil supply recovered in the region.
On the other hand, the Producer Price Index (PPI) in the USA increased by 0.3 percent on a monthly basis and 6.5 percent on an annual basis in October, below market expectations. PPI, which recorded its highest annual increase since November 2022 in October, increased by 6.3 percent in September. The data in question indicated that price pressures continued in the country.
While US President Donald Trump is expected to meet with Chinese President Xi Jinping and Russian President Vladimir Putin next week, the Federal Open Market Committee (FOMC) meeting minutes and Nvidia's balance sheet will also be closely followed.
New York stock market rose
The positive trend came to the fore this week with the continued optimism that the demand for artificial intelligence will increase in the New York Stock Exchange.
On a weekly basis, the Dow Jones index gained 2.07 percent, the S&P 500 index gained 2.51 percent and the Nasdaq index gained 2.27 percent.
Next week, Fed President Kevin Warsh's speech and New York Fed industrial index on Monday, industrial production on Tuesday, housing starts and construction permits on Wednesday, FOMC meeting minutes, weekly unemployment benefit applications on Thursday, Philadelphia Fed manufacturing index, and University of Michigan consumer confidence index on Friday will be followed.
European stock markets remained positive
European stock markets followed a positive trend due to the strong balance sheets announced by companies and the decline in oil prices.
On the macroeconomic data side, the Gross Domestic Product (GDP) in the Eurozone for the third quarter was within expectations, increasing by 0.4 percent compared to the previous quarter and by 1.3 percent on an annual basis.
In the UK, GDP increased by 0.7 percent in the third quarter compared to the previous quarter and recorded the fastest increase since the first quarter of 2024. The country's third-quarter GDP increased by 1.9 percent on an annual basis, meeting expectations.
Artificial intelligence and consumer spending were effective in the third quarter growth of the UK economy.
The data in question revived expectations that the Bank of England (BoE) would increase interest rates.
Meanwhile, according to the data announced by the German Federal Statistical Office, annual inflation in the country, which was 3.3 percent in September, decreased to 2.8 percent in October. Consumer prices decreased by 0.2 percent on a monthly basis.
With these developments, on a weekly basis, the DAX 40 index in Germany gained 3.60 percent, the CAC 40 index in France gained 2.82 percent, the FTSE 100 index in England gained 2.14 percent, and the FTSE MIB 30 index in Italy gained 3.60 percent.
Next week, industrial production in the Eurozone will be followed on Monday, unemployment rate on Tuesday, ZEW indices in Germany, inflation in the Eurozone and the UK, ECB President Christine Lagarde's statements on Thursday, and PPI in Germany on Friday.
Rally mood was seen in Asian stock markets in Japan and South Korea
While sharp increases were seen in the Japanese and South Korean stock markets on the Asian side, the Chinese and Hong Kong stock markets remained negative due to uncertainties about how the change in Nvidia's management might affect Chinese companies that have business relations with the company.
Analysts stated that due to the uncertainties regarding Nvidia, the shares of these companies rose with predictions that Japanese and South Korean companies may find opportunities in global technology supply.
On the other hand, the Consumer Price Index (CPI) for October in China increased by 0.7 percent on an annual basis, below expectations, and slowed down compared to September. The Producer Price Index (PPI) in the country for October recorded the fastest increase since June 2022, with 5.7 percent on an annual basis. Producer inflation in China has accelerated due to rising oil prices due to tensions in the Middle East, as well as demand from emerging sectors such as artificial intelligence.
The data in question revealed the gap between weak domestic demand and rising industrial costs in the country.
In Japan, PPI for October increased by 0.7 percent monthly and 7.1 percent annually, above expectations. It was observed that producer inflation in Japan accelerated compared to September. While PPI in the country decreased by 0.3 percent monthly in September, it increased by 6.8 percent annually.
The data in question kept alive the expectations that the Bank of Japan (BoJ) would increase interest rates.
With these developments, on a weekly basis, the Nikkei 225 index in Japan gained 6.46 percent, the Kospi index in South Korea gained 4.56 percent, while the Hang Seng index in Hong Kong lost 3.45 percent and the Shanghai composite index in China lost 0.41 percent.
Next week, industrial production in China, growth and industrial production in Japan will be followed on Monday, foreign trade balance in Japan on Wednesday, and inflation in Japan on Friday.
The stock market finished the week with an increase
Domestically, Borsa Istanbul's BIST 100 index, which was predominantly buying this week, closed at 11,842.82 points, with a 3.14 percent increase on a weekly basis.
Dollar/TL also completed the week at 50.3579, 0.4 percent above the previous weekly closing.
The fourth Inflation Report of the year was introduced during the week. Fatih Karahan, President of the Central Bank of the Republic of Turkey (CBRT), stated that they updated the 2026 year-end inflation forecast upwards to 29.5 percent and said, "We predict that inflation will stabilize at the medium-term inflation target level of 5 percent after falling to our intermediate target of 21 percent at the end of 2027, to 13.5 percent at the end of 2028, and to 9 percent at the end of 2029." he said.
The Presidency's Directorate of Communications announced that approximately 161 billion liras were paid in kind and cash to 444 thousand 893 individual investors in a total of 119 funds during ordinary and extraordinary liquidation processes.
Next week, the budget balance will be announced on Monday, housing sales and housing price index on Tuesday, consumer confidence index, real sector confidence index and capacity utilization rate on Friday.
