Global Markets focused on the Fed’s interest rate decision – Cyprus Newspaper

While the global markets experienced the optimism of the preparation of trade negotiations of the United States and China, the eyes turned into monetary policy decisions of the US Federal Reserve (FED) this evening and the FED President Jerome Powell’s speech.

While risks due to mutual customs tariffs worldwide reduce predictability, the Planning of negotiating the US and China makes a positive atmosphere in the markets before the Fed’s interest rate decision.

Analysts, the world’s two largest economies, China and the United States officially looking for the basis of the agreement this week may soften the trade tensions and can bring purchases to risky assets, he said.

While the fluctuations in asset prices were observed due to the perception of uncertainty on a global scale, the Fed’s interest rate decision and the Fed President Powell will be made at the focus of investors.

Powell’s “ton” will be of attention

Analysts, Fed President Powell’s oral orientations and the tone of discourse to be used will be carefully monitored by investors, while the money markets, the FED will not make any changes in the policy interest rate, he said.

On the other hand, Trump, Canadian Prime Minister Mark Carney’yi White House hosted a meeting, the statements about the tariff negotiations drew attention. Trump said that China wanted to meet on trade issues and underlined that they did not lose anything by not making trade with China and reported that they would meet with them at the right time.

Stating that they do not have to sign a trade agreement with countries, Trump said, “They have to sign an agreement with us,” he said.

« The US government will not default »

On the macroeconomic data side, the data of the US Department of Commerce showed that the US imports increased in March and the country’s trade deficit increased to a record level before the announcement of reciprocity. Accordingly, the US foreign trade deficit increased by 14 percent in March to 140.5 billion dollars on a monthly basis and saw the highest level of all time.

US Treasury Minister Scott Bessent said in a statement that the debt ceiling would be raised and the US government would not be default, limited the perception of risk that began to increase after this development in the markets.

On the corporate side, Trump said yesterday that the shares of the pharmaceutical producers decreased after saying that he would announce customs duties for drugs within two weeks. Eli Lilly’s shares lost 5.6 percent and Pfizer’s shares lost 4.2 percent.

While the uncertainty arising from the tariffs is reflected in the balance sheets of companies, the US automotive company Ford Motor said that he had suspended his financial predictions regarding the 2025 financial year due to uncertainty about tariffs. Ford’s statement, also due to customs duties in the year due to interest and tax before the tax of approximately 1.5 billion dollars of negative impact was recorded.

Gold decline in negotiation planning in tariffs, oil rise

The price of ounce of gold, which completed the day with the influence of global risks yesterday with 3 thousand 430 dollars, entered the new day with a decrease in the decrease in tensions in the markets, albeit limited. The price of ounce of gold is trading at 3 thousand 385 dollars with a 1.3 percent decrease in yesterday’s closing.

The US 10 -year bond interest rate, which moves in the light of tariff agenda and macroeconomic data since the beginning of May, is at 4.31 percent, and the dollar index is 99.5 horizontally.

Brent Petroleum Varili is also rising with the support it receives from the trade talks, while the new trading day is sold for $ 62.5 with 1 value gain.

Yesterday at the New York Stock Exchange, the S&P 500 index lost 0.77 percent, the Nasdaq index was 0.87 percent and the Dow Jones index depreciated by 0.95 percent. Index futures in the United States began the new day with a positive course with the optimism that the US and China’s senior officials will meet on customs tariffs.

Mixed course was watched in Europe

While a mixed course in the European stock exchanges came to the fore yesterday, it is expected that the US and China will sit at the table in the regional share markets. The news flow of the Russian-Ukraine War and the balance sheet statements of companies are among the elements that determine direction in the markets.

While the tariff developments were followed, Chinese President Shi Cinping called on the European Union (EU) on the 50th anniversary of the establishment of diplomatic relations and called for mutual confidence to contribute to global peace, stability and prosperity.

On the other hand, the EU Commission has published a roadmap in which it is prepared for the gradual termination of energy imports from Russia. Accordingly, the EU will stop the import of natural gas and oil from Russia. Russian nuclear energy will also be terminated gradually. Thus, his dependence on Russian energy will end. The EU will take measures to provide energy safely.

In addition, the news flow in the region that the US and the UK has made progress in negotiations for the trade agreement is among the developments that investors closely follow. Meanwhile, in Germany, the Christian Democratic Union (CDU) party President Friedrich Merz could not be elected as the new prime minister of the country in the first round in the Federal Assembly.

With these developments, DAX 40 percent in Germany yesterday and CAC 40 index in France decreased by 0.40 percent, while the FTSE MIB 30 index in Italy was 0.22 percent and the FTSE 100 index increased by 0.01 percent in the UK. In Europe, index futures contracts started the new day with a mixed course.

Commitment to support the economy from China in Asia

On the Asian side, a positive course was followed with developing optimism, while the US and China’s senior officials will come together in order to discuss the tariff issue and China’s reduction in the necessary response rates and their steps to support the economy were welcomed in the markets.

The Chinese Central Bank (PBOC) reduced the 7 -day term repo interest rate from 1.5 percent to 1.4 percent, which is valid from May 8th. In addition, he announced that the requirements of the banks will be reduced by 50 basis points from May 15th. 1 trillion yuan (about $ 139) will provide liquidity to the financial system.

According to the data released in the region today, the April service sector purchasing managers index (PMI) in Japan was 52.4, while the compound PMI was 51.2.

On the other hand, the hot conflicts between India and Pakistan are followed by investors.

With these developments, Nikkei 225 Index in Japan, close to closing, is trading with 0.1 percent, KOSPI index in South Korea, 0.3 percent in China, Shanghai compound index 0.6 percent and Hong Kong in Hong Kong is traded with 0.5 percent.

« We will continue to use liquidity management tools effectively »

BIST 100 index in Borsa Istanbul, which followed a traveling course yesterday in the country, completed the day at 9,134,68 points by gaining 0.25 percent. Borsa Istanbul Futures and Options Market (VIOP) BIST 30 index -based contract on the June -term contract yesterday evening session increased by 0.2 percent to 10.453.00 points compared to the closing of the normal session was traded.

On the other hand, yesterday, President of the Central Bank of Turkey (CBRT) Fatih Karahan, Parliamentary Plan and Budget Commission, the CBRT law in accordance with the Bank’s activities made a presentation. Karahan said that they closely follow the demand indicators and that they will take measures if the developments in demand conditions negatively affect the disinflation process.

The dollar/TL closed at 38,6230 yesterday with an increase of 0.2 percent, today is traded at the level of 38,6440 at the opening of the interbank market.

Analysts, today, the international credit rating agency Fitch Ratings expected to Turkey’s webinar, abroad, the FED’s interest rate decision will come to the forefront, technically the BIST 100 index 9.250 and 9.350 points in the support of 9,100 and 9,000 levels, he said.

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

09.00 Germany, March factory orders

12.00 euro region, March retail sales

14.00 USA, weekly mortgage applications

21.00 USA, May Fed’s interest rate decision

21.30 USA, FED President Powell’s speech