Global markets are mixed – Cyprus Newspaper

In global markets, signals from macroeconomic data on the effects of customs tariffs on the US economy and the FED President Jerome Powell pointed out the uncertainties in their strategies.

It is observed that the optimistic air caused by the temporary tariff compromise between the US and China and the decrease in geopolitical tensions, the possible effects of additional customs duties on economies and many central banks, especially the US Federal Bank (FED), have left its place to concerns.

Although the tariff voltage between the two largest economies in the world has subsided for a while, question marks on the results of US President Donald Trump’s “America first” policy within the scope of the policy of economic and trade policies remain.

« We may be entering a period of more often and potentially more permanent supply shocks”

During this period, when the effects of tariffs on the US economy were partially monitored, their messages on Powell’s monetary policy strategies came to the fore. Powell said that the economic environment has changed significantly since 2020 and that the review of the bank’s monetary policy strategy will reflect its assessments on these changes.

Stating that they will reconsider the aspects of the strategic framework of the bank in the light of the experience of the last 5 years in the current review process, Powell said that many estimates about the long -term policy interest level has increased and said, “We may be entering a period in which there are more frequent and potentially more permanent supply shocks”. Stating that discussions were carried out on those learned from the experiences of the last five years in the current review process, Powell said that they plan to complete the evaluation of certain changes in the Consensus statement in the coming months.

On the other hand, US President Donald Trump, who went to the UAE as part of the Middle East tour, signed new agreements with the country and accelerated the previously committed $ 1.4 trillion dollar investments.

In a statement made by the White House, trade agreements exceeding $ 200 billion between the US and the UAE have been reported, and the total investment agreements in the Gulf region reported that the total investment agreements increased above 2 trillion dollars.

On the macroeconomic data side, the Producer Price Index in the USA (PPI) decreased by 0.5 percent on a monthly basis, while increased by 2.4 percent on an annual basis, it was below expectations.

Producer prices have been seen for the first time on a monthly basis since October 2023, and the annual producer inflation has been the lowest level since September 2024.

Retail sales in the United States, despite expectations to remain constant in April increased by 0.1 percent.

Purchasing weight is observed in bond markets

In the light of these developments, the US bond markets came to the fore yesterday, while the US’s 10 -year bond interest is traded at 4.43 percent in the new day.

The price of ounce of gold yesterday with a 2 percent rise of 3 thousand 240 dollars, while the new trading day decreases. The price of ounce of gold is currently traded for 3 thousand 217 dollars with a decrease of 0.7 percent.

The dollar index completed the day at the level of 100.7 with a decrease of 0.3 percent, while watching horizontal on the new trading day. The price of Brent oil is currently traded for $ 64.5 with an increase of 0.4 percent at the moment.

On the corporate side, the company’s shares lost close to 11 percent after the news that the US Department of Justice was investigating Unitedhealth due to a possible fraud. At the beginning of the week, Unitedhealth Group’s top manager Andrew Witty announced that he resigned, and the company also suspended 2025 estimates.

The crypto currency exchange Coinbase also reported that hackers bribed to support personnel outside the United States to steal customer data and demanded $ 20 million in exchange for not being announced to the public. The company’s shares fell by 7.2 percent.

Meta’s shares fell by 2.4 percent after the news that the artificial intelligence model postponed its release.

With these developments, the S&P 500 index on the New York Stock Exchange increased by 0.41 percent and the Dow Jones index rose by 0.65 percent, while the NASDAQ index decreased by 0.18 percent. Index futures contracts in the United States started the new day positively.

Agenda Peace Negotiations in the Euro Region

While a positive course was followed yesterday in the European stock exchanges, the news flow about Russia and Ukraine’s peace talks are closely monitored.

While the developments in the tariffs are on the agenda, Maros Sefcovic, a member of the European Union (EU) Commission, said that he had a positive meeting with US Trade Minister Howard Lutnick and accelerated negotiations for the tariffs.

According to macroeconomic data announced yesterday in the region, the euro region grew below expectations with 0.3 percent in the first quarter of the year. The UK economy grew above expectations with 0.7 percent in the first quarter of the year. England came to the forefront as the fastest growing country among the G7 countries.

German Foreign Minister Johann Wadephul said that defense shares gained value after US President Donald Trump said that NATO members supported the goal of increasing defense expenditures to 5 percent of gross domestic revenues.

Francois Villeoy, a member of the ECB and the Central Bank of France, said that protectionism and uncertainties in trade have a negative impact on the economic trust of the US. Villeog pointed out that there is a trade war, not in the case of a foreign exchange wars.

With these developments, DAX 40 percent in Germany yesterday, CAC 40 index in France in France 0.21 percent, the FTSE 100 index in the UK 0.57 percent and the FTSE MIB 30 index in Italy won 0.15 percent. Index futures contracts in Europe started the new day with a positive course.

Japan shrinks above expectations in Asia

On the Asian side, signals and signals from macroeconomic data and important companies are not able to meet the expectations of their balance sheets.

Japan’s economy, in the first quarter of the year annualized by 0.7 percent of the expectations of shrinking. In market predictions, the Japanese economy was expected to shrink 0.3 percent.

Following the said data, Boj member Toyoaki Nakamura called for a break from interest rate hikes due to uncertainty in the US tariffs. Nakamura said that the Bank should directly direct the monetary policy by showing the necessary attention to how the Bank’s extreme high uncertainty on US trade policy can affect company and household activities.

On the other hand, industrial production in Japan increased by 0.2 percent on a monthly basis in March and1 percent annually.

In addition, the revenues of the Chinese technology company Alibaba, the first quarter of the year increased by 7 percent compared to the same period of the last year. The company announced its financial balance sheet for the January-March 2025 period. Cloud Intelligence, the company’s cloud information services unit, increased by 18 percent to 30.1 billion Yuana ($ 4,18 billion).

Analysts said that Alibaba’s financial results did not meet investor expectations.

With these developments, the Nikkei 225 index in Japan, close to the closing, watched horizontally, while the KOSPİ index in South Korea was 0.3 percent, the Shanghai compound index in China was 0.5 percent and the Hong Kong in Hong Kong was stretched by 0.7 percent.

Eyes at home in peace negotiations

BIST 100 index in Borsa İstanbul, which followed a sales -weighted course yesterday, lost 1.65 percent of the day and completed the day at 9.541.30 points. Borsa Istanbul Futures and Options Market (VIOP) BIST 30 index -based contract on the June -term contract yesterday evening session of the regular session decreased by 0.2 percent decreased by 10.887.00 points.

On the other hand, peace talks between Russia and Ukraine in Istanbul are closely monitored. Russian President Vladimir Putin’s adviser and the Russian delegation in the negotiations in Istanbul Vladimir Medinskiy, Foreign Minister Hakan Fidan said that they had an efficient meeting.

Dollar/TL, yesterday, 0.2 percent decreased from 38,7060, while today, today the opening of the interbank market increased by 0.4 percent of the previous closing is traded at the level of 38,8480.

Analysts, today, the Central Bank of the Republic of Turkey (CBRT) market participants survey, housing sales, unemployment rate, abroad in the United States in the United States, Michigan University Consumer Confidence Index, including the intensive data agenda, especially in the BIST 100 index 9.800 and 9.900 points in the support of 9.600 and 9.500 points.

The data to be followed in the markets today is as follows:

10.00 Türkiye, May Market Participants Survey

10.00 Türkiye, April housing sales

10.00 Türkiye, March by private sector from abroad credit debt debt

12.00 euro region, March foreign trade balance

15.30 USA, April housing beginnings

15.30 USA, April construction permits

17.00 USA, May Michigan Consumer Confidence Index