The optimistic atmosphere experienced in global markets yesterday was replaced by a mixed outlook today due to the sharp decline in oil prices. After the US stock markets closed in positives yesterday, the decline in oil prices reached 10 percent, and a horizontal trend in US futures is remarkable this morning. In Asian stock markets, while there are losses in Japan, Chinese stock markets are positive. The increase in the March unemployment rate in Japan, announced this morning, to the highest level in the last year, plays a leading role in the losses in NIKKEI.
Fluctuating trend in Borsa Istanbul
While the search for direction in the global markets, where sharp movements in oil prices are confusing, continues, Borsa Istanbul started the day with an increase of 0.45 percent at 101 thousand 722 points. The BIST 100 Index, which went negative for a short time with the sales immediately following the opening, recovered again and moved towards 102 thousand points. At around 11:30, the Index was at 101,515 points with a loss of 0.25 percent.
Dollar/TL is at the 7 lira limit
The dollar/TL exchange rate, which continued its rise despite the positive trend in the stock markets yesterday, started today above 6.99 levels. As of 11:30, the dollar/TL exchange rate is 6.9960; Euro/TL is valued at 7.5750.
All eyes on Treasury auctions
While there is no significant data flow in the domestic markets, all eyes will be on the treasury auctions, which saw record demand yesterday. In the tenders that attracted great attention after BRSA’s active ratio regulation for banks, the Treasury borrowed 11 billion lira after two tenders yesterday.
Today, the Ministry of Treasury and Finance will re-issue government bonds with a maturity of 2 years (539 days), coupon payment every 6 months, fixed coupon, and direct sale of lease certificates with a maturity of 6 months.
The decline in oil prices exceeded 10 percent
Despite the positive news flow for the reopening of economies, things started to get confusing again in the oil markets. US crude oil fell by around 13 percent to $11. Today’s decline in the oil market, which has reacted very harshly to all kinds of news flows in recent weeks, was influenced by the announcement that the United States Oil Fund, the most powerful ETF fund in the USA, sold all of its June oil contracts. As this development made oil investors nervous, the decline in oil prices accelerated.
As of the morning hours, the barrel of Brent oil dropped by around 4 percent, falling below 20 dollars again, while US crude oil dropped by around 12 percent in the June term, falling to 11 dollars.
Source: https://www.dunya.com/finans/haberler/petrol-piyasalarin-moralini-bozdu-haberi-468876
