August futures on BIST 30 Index open strong, following a cautious global market sentiment and key macroeconomic data releases.
The Istanbul Stock Exchange’s Futures and Options Market (VIOP) opened the trading day on a positive note, with the August futures contract based on the BIST 30 Index experiencing a significant uptick. The contract surged by 1.1%, reaching 10,789.75 points during the opening session, signaling a strong start to the week.
Today’s Market Performance
- Opening Rise: The August futures on the BIST 30 Index jumped 1.1% from the previous close, trading at 10,789.75 points.
- Previous Session: On Friday, the contract saw a downward trend, closing 2.75% lower at 10,670.00 points in the regular session. However, it rebounded during the evening session, climbing by 0.8% to reach 10,758.75 points.
Global Market Influence on the Market
Global markets began the week with caution as investors closely monitor a series of macroeconomic data releases. Key among these is the upcoming report from the U.S. Federal Reserve, where Chairman Jerome Powell indicated that the time might be right to lower the historically high policy rates. Powell’s statements at the Jackson Hole Economic Policy Symposium last Friday hinted at potential interest rate cuts, which are dependent on forthcoming economic data and the evolving economic outlook.
- Fed Outlook: The market is currently pricing in a near-certain 25 basis point rate cut from the Fed next month, with the possibility of a 50 basis point cut still on the table.
- Global Caution: Analysts suggest that this cautious global market sentiment is reflected in the steady start of the VIOP index contract.
Key Economic Indicators
On the domestic front, today’s focus will be on the capacity utilization rate, while internationally, market participants are awaiting the Ifo Business Climate Index from Germany and durable goods orders from the U.S. The Dallas Fed Manufacturing Index is also on the radar, providing insights into economic conditions in the U.S.
Technical Analysis
From a technical perspective, analysts have identified key support and resistance levels for the VIOP index contract:
- Support Levels: 10,700 and 10,600 points are seen as critical support levels that traders are closely watching.
- Resistance Levels: On the upside, resistance is expected around the 10,900 and 11,000-point marks, which could be tested if positive momentum continues.
Trading Outlook
Traders are advised to keep an eye on the global economic calendar, particularly any updates from the Federal Reserve, as these could significantly impact market sentiment. The strength in the VIOP index contract is a promising sign, but with global uncertainties still looming, the market may see volatility throughout the week.
As the trading day progresses, market participants will be looking for further signals from both domestic and international economic data releases to guide their strategies. The cautious optimism reflected in the early trading hours suggests that while there are risks, the market may continue to find support from both technical and fundamental factors.
Source: Trthaber / Prepared by Irem Yildiz