Navigating Market Dynamics: A Recap of Last Week’s Key Events and Trends
1. CBRT’s Net Reserves Turn Positive for the First Time in Four Years
Turkiye’s Central Bank (TCMB) has accumulated reserves rapidly, bringing its net reserves, excluding swaps, into positive territory for the first time in four years.
2. Turkiye Grows Through Consumption in Q1
Despite ongoing monetary tightening, Turkiye’s economy grew by 5.7% in Q1 2024, driven by accelerated household consumption ahead of local elections. Consumption contributed 5.5 percentage points to the growth.
3. Koç Holding Ends Talks on Yapı Kredi Sale
Koç Holding announced the termination of negotiations for the sale of Yapı Kredi to First Abu Dhabi Bank.
4. Fed’s Preferred Inflation Gauge Shows Decline
In the US, personal consumption expenditures increased by just 0.2% in April, falling short of expectations.
5. Kashkari: No Rush for Fed to Cut Rates
Minneapolis Fed President Neel Kashkari stated that the US Federal Reserve has no reason to hurry in reducing interest rates.
6. Eurozone Inflation Exceeds Expectations
Eurozone consumer price index (CPI) rose by 2.6% year-on-year in May, surpassing forecasts.
7. Lane: ECB Needs to Maintain Restrictive Stance Throughout the Year
According to Chief Economist Philip Lane, the European Central Bank (ECB) is on track to start rate cuts next month but will need to keep its monetary policy restrictive until 2024.
These key developments highlight the ongoing challenges and shifts in both global and domestic markets, emphasizing the critical role of inflation data and central bank policies.
Source: Bloomberght / Prepared by Irem Yildiz