BIST 100 Index Falls by 0.31% Amid Banking and Holding Sector Losses; Fed and BoJ Policies Set to Influence Market Volatility
Borsa Istanbul started the day on a downbeat note as the BIST 100 index declined by 0.31%, opening at 10,658.11 points. The index fell by 33.57 points from the previous day’s close, reflecting a cautious mood among investors ahead of key global economic events.
At the opening bell, the banking sector index dropped by 0.25%, while the holding sector index slipped by 0.27%. Among the sector indices, construction was the only one to post gains, rising by 0.35%, whereas the tourism sector saw the steepest decline, losing 0.99%.
Yesterday, the BIST 100 index also experienced a downturn, closing the day 0.39% lower at 10,691.68 points. This continued downward trend reflects the broader uncertainties in global markets as investors await the U.S. Federal Reserve’s (Fed) monetary policy decisions expected later today. The mixed performance of global equities highlights the cautious sentiment prevailing across markets.
Adding to the market volatility, the Bank of Japan (BoJ) surprised investors by raising its policy rate to 0.25%. This unexpected move has further complicated the global financial landscape, contributing to the uncertainty in market directions.
Analysts suggest that the Fed is likely to keep its policy rate unchanged at 5.25%-5.50% in today’s announcement. However, all eyes will be on the Fed’s policy statement and the press conference by Fed Chair Jerome Powell, as market participants look for signals on the future path of interest rates. Current pricing in the money markets indicates that there could be up to three rate cuts by the Fed before the end of the year, though this outlook might change based on the Fed’s communication today and the upcoming U.S. employment report due on Friday.
In the domestic market, analysts are also keeping an eye on the trade balance data, while globally, the focus is on Eurozone inflation figures and the U.S. ADP private sector employment report. The culmination of these factors, along with the Fed’s rate decision, is expected to drive market volatility through the second half of the week.
Technical analysis suggests that the BIST 100 index may find support at the 10,600 and 10,500 levels, with resistance at 10,800 points. Today also marks the expiration of futures contracts, which could lead to increased market volatility due to position rollovers and closures.
Source: AA / Prepared by Irem Yildiz