Global markets remain positive with the Fed’s new step

Yesterday, while US stock markets continued the downward trend that started in the second half of last week, the step taken by the Fed enabled purchases to strengthen.

In the statement made by the Fed, it was noted that the bank will purchase corporate bonds within the scope of the Secondary Market Corporate Credit Facility (SMCCF). It was stated in the statement that a corporate bond portfolio will be created with the purchase in question, and that criteria such as minimum rating and maximum maturity will be taken into consideration in purchasing corporate bonds.

On the other hand, the Fed started receiving applications from banks yesterday within the scope of the loan program for small and medium-sized businesses that it implemented to alleviate the economic effects of the new type of coronavirus (Covid-19) epidemic.

The New York stock market, which saw its lowest level in the last three weeks during the day yesterday, started to rise with the statements of the Fed. Dow Jones index gained 0.62 percent, S&P 500 index gained 0.83 percent and Nasdaq index gained 1.43 percent.

On the European side, a sales-oriented trend was observed in the stock markets that closed before the Fed’s decisions. DAX index in Germany decreased by 0.32 percent, CAC 40 index in France decreased by 0.49 percent and FTSE 100 index in England decreased by 0.66 percent.

Following the Fed’s decisions, there is a rally in Asian stock markets today after the Bank of Japan (BoJ) announced that it will not change interest rates in line with expectations and will provide more support for the financing of companies.

Near the close, the Nikkei 225 index in Japan gained 5 percent, the Kospi index in South Korea gained 4.7 percent, the Hang Seng index in Hong Kong gained 3 percent, and the Shanghai composite index in China gained 1.2 percent.

At Borsa Istanbul, which had a sell-off trend parallel to the European stock markets yesterday, the BIST 100 index lost 0.25 percent of its value and finished the day at 109,555.95 points. Dollar/TL, which closed at 6.8376 yesterday, is traded at 6.8220 at the opening of the interbank market today.

Analysts noted that the second wave concerns in the Covid19 epidemic continue, especially due to new cases seen in Beijing, the capital of China, and said that the support of central banks and economic management has become “indispensable” for the stock markets.

Stating that the speech that Fed Chairman Jerome Powell will give to Congress today will be followed, analysts stated that the news flow and data agenda regarding the Covid-19 epidemic should also be monitored.

Analysts stated that technically, the 109,000 level in the BIST 100 index has become a support position, and emphasized that if there is a persistence above 110,000 points, the rise may gain momentum and the resistance at 116,000 may come to the fore in the short term.

Source: https://www.aa.com.tr/tr/ekonomi/kuresel-piyasalar-fedin-yeni-adimi-ile-sosyal-seyrediyor/1878302

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