Global markets on mixed course due to rising tensions in Middle East

ISTANBUL

Global markets followed a mixed course due to expectations that the Fed may continue its rate cut cycle, while tensions in the Middle East dampened risk appetite.

In the money markets, the possibility for a 25-basis-point rate cut by the Fed in November stays at 87%, while the probability of a 50-basis-point rate cut is completely off the table.

The US 10-Year Futures bond rose above 4% for the first time since August, and the US Dollar Index is hovering around 102.4 on Tuesday.

The ounce price of gold closed Monday with a 0.4% decline, currently at $2,643, while the barrel price of Brent crude oil closed at $80.8, up 3.8%. It is currently trading at $79.5.

On the New York Stock Exchange, the Dow Jones fell 0.95%, the S&P 500 0.96%, and the Nasdaq 1.17% on Monday. American index futures started Tuesday on a mixed course.

At the same time, Google shares fell 2.5% after a US federal judge ordered the firm to offer Android users more options to download applications and proceed in-app purchases.

As for Europe, a positive outlook was seen except for Germany, though recent data showed that concerns over economic activity in the region continue.

Germany’s automobile sales fell 4.7% year-on-year in the first half of the year, while factory orders decreased 5.8% in August.

The European Central Bank (ECB) is expected to cut its interest rates by another 25 basis points in October, as inflationary pressures cool down faster than expected.

Meanwhile, the FTSE MIB rose 0.66%, the CAC 40 0.46%, and the FTSE 100 0.28%, while the DAX 40 fell 0.09% on Monday. European futures started Tuesday on a mixed course.

In Asia, a sales-heavy course came to the fore, while an economic briefing by Chinese officials dissatisfied investors following the previously announced incentives.

Chinese officials said that the government will continue to issue ultra-long-term bonds next year to support major projects and invest 100 billion Chinese yuan ($14 billion) in strategic sectors.

Following this news, the Shanghai Composite Index gave back some of its gains after rising 11%.

Meanwhile, household spending in Japan fell 1.9% year-on-year in August.

Near the close on Monday, the Shanghai Composite Index rose 3.4%, while the Nikkei 225 fell 1.2%, the Kospi Index 0.5%, and the Hang Seng Index 7.3%.

As for Türkiye, the BIST 100 followed a sales-heavy course on Monday, closing at 9,031.64 points, down 0.85%.

The US dollar/Turkish lira exchange rate closed Monday at 34.2639, up 0.01%, and it is currently trading at 34.2690.

*Writing by Emir Yildirim