SHAFAQNA TURKEY. As the now-ended banking crisis hits the US again, the deluge of news on the subject is in the focus of investor attention.
Despite the fact that yesterday a significant part of the shares of regional banks depreciated by more than 30 percent, statements by banks failed to dispel fears.
Shares of Pacwest, one of the banks in question, lost more than 50 percent after it announced that it was evaluating its options, including the sale of strategic assets, and that negotiations with potential investors and partners who showed interest in the recent period continued. In addition, the bank’s shares were repeatedly stopped due to high volatility.
News reports in the US press have reported that federal and state officials are evaluating the possibility of market manipulation of bank stocks.
A spokesman for the US Treasury, on the other hand, said that the US banking system has solid liquidity and deposit flows are stable, and they continue to monitor market developments in the regional banking sector.
The Fed will cut interest rates before the end of the year
While these events caused deep selling in the stock markets, the assessment that the US Federal Reserve (Fed) will cut interest rates before the end of the year has intensified.
While weekly jobless benefits hit their highest level in 6 weeks with 242k in data released yesterday, analysts said the nonfarm payrolls data due today is likely to further increase market volatility in this period when the banking crisis was effective.
Analysts said Fed Chairman Jerome Powell reiterated in his statements on Wednesday that he will focus on fighting inflation and that he will make data-driven decisions, and said today’s data is important in terms of clarifying the direction of the labor market.
Recalling that the unemployment rate is at a historically low level, despite the “hawkish” steps taken in the country, analysts said that a possible easing in the labor market could expand the field of Fed policy.
Apple announced financial results
On the other hand, Apple, one of the US tech giants, announced its financial results after the markets closed yesterday during the US reporting season.
Accordingly, while Apple’s revenue fell 3 percent annually to $94.8 billion between January and March, it came in above market expectations.
The events sent the S&P 500 down 0.72 percent, the Dow Jones down 0.86 percent and the Nasdaq down 0.49 percent in the New York stock market. Futures contracts for indices in the US started the new day with growth, as the financial results of Apple turned out to be better than expected.
While European stock markets followed a sell-oriented course yesterday, the European Central Bank (ECB) raised all three major discount rates by 25 basis points.
The bank said in a statement that the decisions to be made in the next period will strain the markets enough.
Fighting inflation in the Eurozone
ECB President Christine Lagarde, who issued statements after the meeting, said the ECB has “more room” to fight inflation and that it has not “stopped” tightening monetary policy to fight inflation in the eurozone.
Analysts say that after the aforementioned developments, money market pricing is forecast to rise by 50 basis points before the end of the year.
Yesterday, the DAX 40 rose 0.51% in Germany, the FTSE 100 rose 1.10% in the UK, the CAC 40 rose 0.85% in France and the MIB 30 rose 0.61% in Italy. Futures contracts for indices in Europe started a new day with growth.
While there were no deals on the markets of Japan and South Korea in Asia today due to the holiday, the open stock markets of China and Hong Kong are showing multidirectional dynamics.
Uptrend stands out
Analysts said worries about the Chinese economy linger and that fears of a US recession continue to hurt asset prices in China, while Hong Kong’s high-tech stock market sees an uptrend.
Although the Purchasing Managers’ Index (PMI) for the services sector, released today in China, fell to 56.4, it indicates that expansion is ongoing.
Toward the close, the Shanghai Composite Index in China lost 0.6%, while the Hang Seng Index in Hong Kong rose 0.5%.
BIST 100 Index at Istanbul Exchange
The BIST 100 index on the Borsa Istanbul stock exchange, which followed fluctuations in the domestic market yesterday, ended the day at 4,484.35 points, down 0.04% from the previous close.
USD/TL traded at 19.4980 at the interbank market open today after closing at 19.4960 up 0.1 percent yesterday.
Analysts said that today they will follow the weekly monetary and banking statistics in the country, retail sales in the Eurozone and the US employment report, and technically the BIST 100 index levels of 4.450 and 4.400 are support, 4.500 and 4.600 points are resistance. . . . WORLD
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