Although the escalation of tensions between the USA and China and the uncertainty of the Hong Kong issue put pressure on prices, positive signals regarding the opening of economies after the coronavirus ensure that the morale of the markets remains high. US stock markets closed the second trading day of this week on a positive note. As of this morning, US futures are slightly positive, while Asian stock markets do not indicate a clear direction. While the Nikkei stock market is rising with the effect of the new incentive package signed in Japan, China and Hong Kong are declining due to the political crisis between the two countries.
Accompanying the positive atmosphere in global markets, BIST 100 index in Borsa Istanbul started the day at 105 thousand 642 points with an increase of 0.66 percent. Foreign exchange markets are a little calmer today. Dollar/TL exchange rate was 6.78 in this morning’s transactions; euro/TL changes hands at 7.47.
Economic confidence, which bottomed out in April, increased by 20 percent in May
The economic confidence index increased by 20 percent in May compared to the previous month and rose to 61.7. The index hit its lowest levels in history with 51.3 in April.
Turkey’s CDS premium is declining
Turkey’s five-year credit default swap (CDS) premium is declining after exceeding 650 basis points and reaching the highest level since the 2008 financial crisis.
CDS, which was at 240 points at the beginning of the year, indicating the best risk appetite in 20 months, is today at 535/550. The decline in CDS continues, although it has weakened after becoming evident from 600 points to 500 points in the last few days.
Albayrak: We will close the year with growth
In his speech on TRT yesterday, Albayrak stated that swap negotiations within the scope of local currency trade are continuing and that 2020 will be completed with positive growth. Albayrak also stated that there may be new support packages and that early elections are not on the agenda.
Albayrak said that during the coronavirus period, Turkey’s “neither its interest, nor its exchange rate, nor its stock market, nor its balance of payments, nor its budget have been derailed.”
Unexpected increase in US oil stocks pushed prices down
The data announced by API in the USA pointed out an unexpected increase in oil stocks, causing oil prices to decline in international markets. Following the data indicating that stocks increased by 8.7 million barrels in the week of May 22, the barrel price of West Texas oil on NYMEX dropped to $31.14/barrel. Nowadays, compared to yesterday
It lost $1.18 to $31.63.
On ICE, Brent oil is traded at $33.88/barrel with a loss of $0.86.
Analysts state that the recovery in oil demand in the USA continues, but API data shows that this recovery in demand is not strong enough.
All eyes in the markets will be on the oil stock data to be announced today by the US Department of Energy.
FED/Williams: A strong recovery can be seen in the second half
New York Fed President John Williams said the US economy could bottom out in May or June and see a strong recovery in the second half of the year, but the forecasts contain too much uncertainty and the central bank is considering a range of scenarios. St. Louis Fed President James Bullard argued that it may be appropriate to extend unemployment insurance payments during the period when businesses remain closed due to the coronavirus outbreak, but it would not be appropriate to extend unemployment payments at a time when the recovery is taking root.
Source: https://www.dunya.com/finans/haberler/borsa-105-bini-gecti-dolartl-678-haberi-471306
