Fed expected to cut interest rates as of H1 next year, while ECB forecasts rebound in inflation
Markets expect the Fed’s final interest rate will be between 5.25-5.50% as the bank’s two-year hawkish policy cycle is expected to come to an end.
However, the forecasts suggest that the Fed may start to cut the policy rate as of June next year, leading to a buying-weighted course in bond markets, while the US 10-year bond yield was balanced at 4.40%.
On the macroeconomic, new home sales announced on Monday in the US fell by 5.6% on a monthly basis to 679,000 in October, below market expectations.
The dollar index also fell 0.2% to 103.2 under pressure from expectations that the Fed could start cutting interest rates in the first half of next year.
The ounce price of gold rose to its highest level since May with $2,018 on Monday.
Amid the humanitarian pause between Hamas and Israel being extended for two days, the barrel price of Brent oil was balanced at $79.8, carrying the downward trend to the fifth consecutive working day.
On Monday’s New York stock exchange, the Nasdaq index decreased by 0.07%,the S&P 500 index by 0.2%, and the Dow Jones index by 0.16%.
Index futures contracts in the US began Tuesday with a mixed course.
While European stock markets followed a sales-heavy course on Monday, European Central Bank’s Governor Christine Lagarde said that headline inflation in the Eurozone may rebound in the coming months.
Lagarde pointed out that wage pressures are still strong and that they expect wages to continue to be the main factor driving domestic inflation.
Lagarde expects inflationary pressures to weaken, although the headline inflation may rise slightly in the coming months due to the base effect.
However, Lagarde underlined that the medium-term inflation outlook continues to be surrounded by serious uncertainties.
Analysts stated that after these statements, eyes turned to the inflation data that will be announced in the region this week.
On Monday, the DAX 40 index in Germany decreased by 0.39%, the CAC 40 index in France by 0.37%, the MIB 30 index in Italy by 0.31% and the FTSE 100 index in the UK by 0.37%.
Index futures contracts in Europe began Tuesday with a sales-weighted course.
While Asian markets followed a negative course except for South Korea on Tuesday, analysts stated that profit sales were effective in the sales pressure in the region.
Near the close, the Nikkei 225 index in Japan fell 0.2%, the Hang Seng index in Hong Kong fell 1.1%, the Shanghai composite index in China fell 0.1%, and the Kospi index in South Korea rose 1%.
In Türkiye, the BIST 100 index in Borsa Istanbul, which followed a buying-weighted course on Monday, completed the day at 8,107.19 points with a gain of 1.85%.
After closing the day at 28.9135 with an increase of 0.2% on Monday, the USD/TL is trading at 28.9320 at the opening of the interbank market on Tuesday.