While there was a sharp decline in global markets after the data announced around the world pointed out deep damage to economies due to the new type of coronavirus (Covid-19) epidemic, industrial production in the Eurozone, housing starts in the USA and weekly unemployment data will be followed today.
In their joint statement yesterday, G20 finance ministers and central bank governors stated that they continue to be cautious within the scope of combating the new type of coronavirus (Covid-19) epidemic, and that they are ready to take additional measures and use all available policy tools when necessary. Saudi Arabian Finance Minister Mohammed al-Jadan said after the meeting that G20 countries allocated 7 trillion dollars to fight against Covid-19.
International Monetary Fund (IMF) President Kristalina Georgieva announced the establishment of the Short-Term Liquidity Line (SLL) in order to further strengthen the global financial safety net within the scope of combating the economic effects of the Covid-19 epidemic.
According to data released yesterday in the USA, retail sales decreased by 8.7 percent monthly in March, reaching a record level. In the same period, industrial production decreased by 5.4 percent, showing its biggest decline since January 1946. On the other hand, the net profit of Goldman Sachs, one of the American international investment banking and financial services institutions, in the first quarter of this year decreased by 46 percent compared to the same period last year. In the same period, Citigroup’s net profit decreased by 46 percent and Bank of America’s net profit decreased by 45 percent.
In the April issue of the “Beige Book” report of the US Federal Reserve (Fed), published yesterday, it was stated that economic activity contracted “sharply and suddenly” throughout the country due to the Covid-19 epidemic, the most affected sectors were recreation and accommodation and retail, and manufacturing and energy sectors were also affected. It was stated that layoffs are expected to increase in the coming months.
While the number of deaths in the United States due to coronavirus exceeded 30 thousand, President Donald Trump announced that they had passed the “highest level” point in the epidemic and new case data was decreasing in many regions. Stating that they have met with state governors about the reactivation of the country’s economy and that they will make a statement on this issue today, Trump said, “Some states may reactivate their economies before May 1.” said. On the other hand, the “Stay at Home” order in Washington DC has been extended until May 15.
Despite the statements made that fiscal and financial support will continue, the data announced worldwide due to the epidemic and concerns that demand will remain low create selling pressure in the markets, while on the geopolitical side, developments regarding the speedboats of the Iranian Revolutionary Guard Army harassing US warships in the Persian Gulf pose a risk. will be monitored as an element.
With these developments, the barrel price of Brent oil lost 9.5 percent of its value yesterday and fell to 26,049 levels, and today it remains at 26.9 levels.
In the New York stock exchange, yesterday the Dow Jones index lost 1.9 percent, the S&P 500 index lost 2.2 percent and the Nasdaq index lost 1.4 percent. While the dollar index rose to 99.976 yesterday after a one-week downward trend, it stabilized at 99.8 levels after testing the 100 limit today. US bond interest rates decreased to 0.6180 percent as investors turned to the bond market.
The center of the epidemic is in Europe, while the European Union (EU) Commission announced the road map that includes the gradual removal of the Covid-19 measures implemented by the member countries under certain conditions, but the share markets lost nearly 4 percent of their value, the euro/dollar parity fell by 1, It went below 09. In France, the CAC 40 index decreased by 3.76 percent, in the UK, the FTSE 100 index decreased by 3.34 percent, and in Germany, the DAX 30 index decreased by 3.9 percent.
On the Asian side, with the gradual start of economic activities in China, new house prices increased by 5.3 percent annually in March. While the Shanghai composite index gained 0.1 percent in value near the close after the data, Japan’s Nikkei 225 index fell 1.4 percent as the yen, rising against the dollar due to safe haven purchases, put pressure on exporter company shares.
In parallel with the decrease in risk appetite in global markets and the increase in the exchange rate, the BIST 100 index in Borsa Istanbul lost 2.73 percent of its value and closed at 95,854.92 points. Dollar/TL parity is moving at 6.9015 levels today, after rising to 6.9246 yesterday.
Analysts reported that an intense data agenda will be followed today, including the housing price index and the private sector’s loan debt from abroad in the country, industrial production in the Eurozone, housing starts in the USA, Philadelphia Fed Manufacturing Index and weekly unemployment applications.
Stating that the news flow regarding the Covid-19 epidemic will continue to be decisive on the direction of the markets, analysts said that technically, 93,200 points in the BIST 100 index will be watched as support, while 99,000 points will become resistance.
The data to follow in the markets today are as follows:
10.00 Türkiye, private sector loan debt from abroad in February
12.00 Eurozone, industrial production in February
14.30 Türkiye, weekly money and bank statistics
14.30 Türkiye, February housing price index
15.30 USA, March construction permits
15.30 USA, March housing starts
15.30 USA, weekly unemployment claims
15.30 USA, Philadelphia Fed Manufacturing Index for April
