Global markets start week on positive note amid easing inflation concerns

ISTANBUL

Global markets began the new week on a positive trend, as inflationary pressures appear to be waning, although concerns about a potential recession continue to cloud economic outlooks worldwide.

Analysts predict that the US Federal Reserve will cut interest rates by 75 basis points before the year’s end. However, market volatility may increase depending on upcoming macroeconomic data releases.

The US 10-Year Treasury Futures yield stands at 3.75%, while the US Dollar Index opened Monday at 100.8.

Gold continued its record-setting streak, with the price per ounce reaching a historical high of $2,631. It is currently trading at $2,623.54, a 0.2% rise from its previous close.

Brent crude oil prices also saw an increase, climbing 0.4% to $74.3 per barrel, buoyed by optimism of a soft economic landing.

On Friday, the Dow Jones rose 0.09%, while the S&P 500 dipped 0.19%, and the Nasdaq fell 0.36%. US index futures started Monday on a positive trajectory.

In Europe, recession fears remain, but markets are gaining confidence that central banks, particularly the European Central Bank (ECB), have more room to maneuver following the Fed’s recent 50-basis-point rate cut.

The ECB is expected to reduce rates at least once more by the year’s end. European stock indices showed a sales-heavy performance on Friday, with the DAX 40 falling 1.49%, the CAC 40 1.51%, the FTSE 100 1.19%, and the FTSE MIB 0.83%.

Asian markets showed gains on Monday, driven by the People’s Bank of China cutting its 14-day repo rate by 10 basis points to 1.85%.

Meanwhile, the Bank of Japan Governor Kazuo Ueda indicated that the bank is not rushing to hike rates. The US dollar/Japanese yen exchange rate rose 0.2% to 144.14, though Japanese markets were closed on Monday for the Autumnal Equinox Holiday.

Near Friday’s close, the Hang Seng Index climbed 0.3%, the Kospi Index gained 0.2%, and the Shanghai Composite Index advanced 0.6%.

In Türkiye, the BIST 100 saw a sales-heavy session on Friday, ending the day down 0.76% at 9,900.25 points. The US dollar/Turkish lira exchange rate closed Friday at 34.1225, up 0.3%, and was trading slightly lower at 34.1070 on Monday, down 0.1%.

*Writing by Emir Yildirim