Eyes in global markets turned into ECB’s interest rate decision – Cyprus Newspaper
Global markets watched a mixed course with the re -increasing risks of customs tariffs and signals from the labor market in the United States, while the eyes turned into an interest rate decision of the European Central Bank (ECB) today.
US President Donald Trump’s policies continue to be the main source of uncertainty in the global economy, while the economic data announced are sought for the course of the national economy.
Analysts, today’s weekly unemployment benefits to be announced in the United States and the unemployment rate to be announced tomorrow with the focus of non -agricultural employment data stating that the markets, said the signals will be taken from the data in question.
ADP private sector employment took place below expectations
ADP private sector employment announced yesterday in the United States increased by 37 thousand in May. Private sector employment, which was below market expectations, was expected to increase 111 thousand people in this period.
After the employment figures in the private sector to the lowest level of recent years, President Trump called on Jerome Powell, President of the US Federal Reserve (FED), to reduce interest rates.
The Service Sector Purchasing Managers Index (PMI) announced yesterday in the United States decreased to 49.9 in May. The data below expectations pointed out for the first time in the service sector since June 2024.
On the other hand, the Fed’s “Beige Book” report published yesterday reported that high tariff rates have created upward pressure on costs and prices.
Trump is expected to meet with Chinese President Shi this week
The tariff negotiations carried out by the US administration with trade partners continue to be the focus of the markets. Trump is expected to meet with Chinese President Shi Cinping this week.
While the tariff negotiations between the European Union (EU) and the USA continued, the officials of the two sides came together.
Analysts stated that news about negotiations continue to be effective on the direction of the markets, especially in the EU side, a commercial reconciliation will be effective in reducing global risk perception.
US 10 -year bond returns fell approximately 11 basis points
With the impact of the expectation of change in interest rate cutting prices, the US 10 -year bond interest decreased by about 11 basis points yesterday and completed the day from 4.36 percent after it decreased to 4.35 percent. The US 10 -year bond interest rate is currently 4.37 percent.
Recently explained data from the signals in the US economy indicating that the risks to grow in the analysts indicating that the analysts, the money markets in the FED in September, the first interest rate reduction of the year can shift to July, he said.
The price of ounce of gold yesterday with an increase of 0.6 percent of 3 thousand 372 dollars completed the day, currently decreased by 0.3 percent of 3 thousand 362 dollars is trading.
The dollar index starts at the level of 99.3 with a decrease of 0.1 percent to the new day, while the barrel price of Brent oil decreased by 0.2 percent at $ 64.5.
With these developments, the NASDAQ index rose by 0.32 percent yesterday at the New York Stock Exchange, while the Dow Jones index fell 0.22 percent. The S&P 500 index watched horizontally. Index futures contracts in the United States started the new day negative.
ECB is expected to download interest
While the European stock exchanges came to the forefront yesterday, except for Italy, it is estimated that ECB will reduce three basic policy interest rates 25 -base points.
While the ongoing recession concerns and contraction in manufacturing industry activity continues to be one of the main economic agenda items, ECB is expected to relax in order to facilitate financing and reduce costs.
Analysts stated that the directions of ECB President Christine Lagarde will also be important, and that the Bank’s speech will be searched for the path to the path that the bank will follow.
On the other hand, according to the EU Commission yesterday, Bulgaria was reported to be ready to pass to euros from the beginning of next year. In the ECB, Bulgaria announced that it meets all the criteria to adopt the euro currency next year.
Yesterday, DAX 40 in Germany, the FTSE 100 index in the UK and the CAC 40 index in France won 0.53 percent, while the FTSE MIB 30 index was horizontal. Index futures contracts in Europe also started the new day.
Asian stock markets are positive except Japan
With the strengthening of expectations that the trade wars on the Asian side will not be intensified, a positive course is followed except Japan, while the increase in growth in the US is a risk appetite.
After the trade reconciliation between the United States and China, the concern that commercial restorations, which gained strength again at the beginning of the week, were replaced by a moderate, negotiating appearance.
On the other hand, after the end of political uncertainties in South Korea, the receipt of the Kospi index attracts attention.
According to macroeconomic data described in the region today, May Caixin service sector in China came above expectations with PM 51.1. The compound PMI came at 49.6 levels and took place below the predictions.
With these developments, the Nikkei 225 index in Japan, close to closing, lost 0.4 percent, while the KOSPI index in South Korea increased by 1.1 percent, the Shanghai compound index in China 0.1 percent and the Hang Seng index in Hong Kong rose by 0.6 percent.
BIST 100 index was positive yesterday
BIST 100 index in Borsa Istanbul, which followed a traveling course yesterday, finished the day at 9.474.96 points by gaining 2.13 percent. Borsa Istanbul Futures and Option Market (VIOP) BIST 30 index -based contract on the June -term contract yesterday evening session of the normal session closing 0.1 percent below 10.701.00 points.
On the other hand, today, due to the eve of the Eid al -Adha, Borsa Istanbul will close early. Transactions in the stock market will be carried out until 12.40.
Dollar/TL, yesterday, 0.1 percent rise from 39,1720, today, today the opening of the interbank market of 0.3 percent of the previous closing of 39,3080 is traded.
Analysts, today, weekly money and bank statistics in the country, while abroad, especially the interest decision of the ECB will be followed by the intensive data agenda will be followed, technically BIST 100 index 9.500 and 9.600 points in the resistance, 9.400 and 9.300 levels are supported.
The data to be followed in the markets today is as follows:
12.00 euro region, April producer price index
12.00 Türkiye, weekly money and bank statistics
15.15 Euro Region, ECB’s interest rate decision
15.30 USA, April Foreign Trade Balance
15.30 USA, Weekly Unemployment Period Applications
15.45 Euro Region, ECB President Lagarde’s speech
