While global markets remain negative due to increasing second wave concerns regarding the new type of coronavirus (Covid-19) epidemic, the interest rate decision of the Central Bank of the Republic of Turkey (CBRT) is expected domestically.
While the USA continues to be the center of the Covid-19 epidemic and the country with the highest loss of life, the number of people infected with the virus in the country has reached 2.4 million.
While the failure to achieve the expected improvement in the number of cases in the epidemic increased concerns about the second wave, sales in the stock markets strengthened yesterday with the thought that the economic recovery might be in danger, while oil prices declined.
One of the reasons why expectations for a rapid recovery for the economy have decreased is that the International Monetary Fund (IMF) revised its contraction forecast for the global economy from 3 percent to 4.9 percent for this year.
The IMF, which reduced its global growth forecast for 2021 from 5.8 percent to 5.4 percent on the grounds that the impact of the Covid-19 epidemic on the economy is more negative than expected, estimates that the US economy will shrink by 8 percent this year and the Eurozone economy by 10.2 percent. did.
With these developments, the Dow Jones index lost 2.72 percent, the S&P 500 index lost 2.59 percent and the Nasdaq index lost 2.19 percent in the New York stock exchange, which followed a sales-oriented trend yesterday.
Sales were also seen to be effective in European share markets. The DAX index in Germany decreased by 3.43 percent, the FTSE 100 index in the UK decreased by 3.11 percent and the CAC 40 index in France decreased by 2.92 percent.
The negative trend in the US and European stock markets continued into the new day with the Asian markets. On the day when the markets in China were closed due to a public holiday, the Nikkei 225 index in Japan lost 1.2 percent and the Kospi index in South Korea lost 1.9 percent near the closing.
BIST 100 index, which declined domestically due to the negative trend in world stock markets, completed the day at 114,448.91 points, with a decrease of 0.77 percent. Dollar/TL, which closed at 6.8559 yesterday, remains horizontal at 6.8550 at the opening of the interbank market today.
Analysts stated that the data agenda, including the CBRT’s Monetary Policy Committee meeting in the country and the 1st quarter growth in the USA will be followed abroad today, and that the news flow regarding Covid-19 remains at the center of the agenda.
Analysts noted that technically, the 116,000 and 118,000 levels in the BIST 100 index have become stronger as resistance, and said that 112,000 and 110,000 have stood out as support.
While the majority of economists participating in the survey conducted by AA Finance predicted that the CBRT will continue to reduce interest rates at today’s Monetary Policy Committee meeting, the median of the policy rate reduction expectations was 25 basis points.
At the last MPC meeting on May 21, the policy rate was reduced by 50 basis points to 8.25 percent.
The data to follow in the markets today are as follows:
14.00 Türkiye, CBRT Monetary Policy Committee decisions
14.30 Türkiye, weekly money and bank statistics
14.30 Eurozone, European Central Bank meeting minutes
15.30 USA, 1st quarter Gross Domestic Product
15.30 USA, May durable goods orders
15.30 USA, weekly unemployment claims
Source: https://www.aa.com.tr/tr/ekonomi/yurt-ici-piyasalar-merkez-bankasina-odaklandi/1889151
