Military tension between the US and Iran led global markets to mixed trading, while the Federal Reserve's rate hike signal also unnerved investors. After US President Donald Trump announced the end of the ceasefire with Iran, US Central Command (CENTCOM) said it struck around 90 Iranian military targets.
With the rise in geopolitical risk perception, Brent crude oil prices saw $80 per barrel yesterday for the first time since June 22. The number of tankers passing through the Strait of Hormuz dropped from 14 the previous day to 7 yesterday.
Fed signals rate hike
The Federal Reserve's minutes released yesterday revealed that most officials said a rate hike might be warranted if inflation remains high because of factors such as artificial intelligence demand or the war in the Middle East.
IMF lowers growth forecast
The International Monetary Fund (IMF) lowered its global growth forecast for this year to 3 percent from 3.1 percent in its World Economic Outlook report. The report also stated that Turkey's economy is forecast to expand by 2.9% in 2025 and 3.6% in 2026.
US and European stock markets fall
In New York, the S&P 500 fell 0.28% and the Dow Jones dropped 1.09%, while the Nasdaq rose 0.2%. In Europe, geopolitical risks and Trump's trade remarks on Spain weighed on stock markets. The UK's FTSE 100 lost 1.66%, Germany's DAX 40 fell 2.23%, France's CAC 40 dropped 2.18% and Italy's FTSE MIB 30 declined 1.22%.
Gold falls for third day, BIST 100 declines
Rising oil prices stoking inflation fears and expectations of a tight stance from central banks weighed on gold prices. Gold declined for the third consecutive trading day, settling at $4,067 per ounce. On the Istanbul Stock Exchange, the BIST 100 index fell 2.12% to 14,189.96 points.
Data to watch today
Analysts noted that in the BIST 100 index, 14,100 and 14,000 points are support, while 14,250 and 14,300 points are resistance. Today, markets will focus on the following data:
- Japan June Machinery Orders
- Germany May Trade Balance
- Turkey weekly monetary and banking statistics
- US weekly jobless claims
- US June existing home sales
