ISTANBUL

Global markets were mixed on Wednesday after the Fed minutes pointed to increased upside risks to the US inflation outlook, ahead of President-elect Donald Trump’s likely move to declare a national economic urgency to provide a legal ground for additional tariffs, analysts say.

Trump could utilize the International Economic Emergency Powers Act (IEEPA) to unilaterally manage imports and create a new tariff program, while a final decision is pending as the President-elect’s team is still exploring other legal avenues, CNN reported.

Analysts note that Trump’s statements on his policies moving forward can increase the risk perception and his tariffs can trigger a global trade war, fueling inflationary pressures.

Despite not mentioning Trump, the FOMC (Federal Open Market Committee) meeting’s minutes stated that Fed officials expect inflation to continue moving downward to the 2% target, though the phase to get there may take longer than expected due to potential changes in trade and immigration policies.

Meanwhile, the US private sector employment rose by 122,000 people in December 2024, below market expectations, while the initial claims for unemployment insurance fell to 201,000 the week ending on Jan. 4, falling to an 11-month low and below market estimates.

The US 10-Year Futures bond is balanced at 4.67% on Thursday after reaching its highest since October 2023 with 4.73% on Wednesday.

The US Dollar Index climbed 0.5% on Wednesday, closing at 109.1, and it is currently following a flat course on Thursday.

Brent crude oil is trading at $75.8 per barrel on Thursday, down 0.3% due to the uncertainties in trade and economic policies to be implemented when Trump takes office on Jan. 20.

On the New York Stock Exchange, the S&P 500 rose 0.16% and the Dow Jones 0.25%, while the Nasdaq fell 0.06% on Wednesday.

As for Europe, a mixed course came to the fore while recession concerns continued.

A recent survey by the European Central Bank (ECB) showed that eurozone consumers’ medium-term inflation expectations rose for the second consecutive month.

Meanwhile, British oil firm Shell’s shares fell 1.7% after it lowered its liquefied natural gas (LNG) production outlook for the fourth quarter of 2024.

European renewable energy firms Vestas, Siemens Energy, and Orsted shares declined 7.7%, 5.96%, and 3.36%, respectively.

The CAC 40 index fell 0.49% and the DAX 40 0.05%, while the FTSE MIB 30 climbed 0.49% and the FTSE 100 0.07% on Wednesday. European futures started Thursday on a mixed course.

As for Asia, a negative course came to the fore except for Hong Kong, while the FOMC meeting increased the risk perception in the region.

China’s consumer price index (CPI) for December rose 0.1% on an annual basis, in line with estimates, while the country’s producer price index (PPI) fell 2.3% over the same period, according to official data released on Thursday.

The Nikkei 225 fell 1.3% and the Shanghai Composite Index 0.3%, while the Kospi Index rose 0.1% and the Hang Seng Index remained flat.

Meanwhile, Türkiye’s BIST 100 followed a sales-heavy course, ending Wednesday on a loss of 0.82% at 9,890.76 points.

The US dollar/Turkish lira exchange rate closed Wednesday at 35.3387 on a horizontal course and it is trading just above the previous close at 35.3500 on Thursday.

*Writing by Emir Yildirim