- BIST10011,798+3.22%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,140.90-0.46%
- INTEREST37.00%-1.00
- BITCOIN82,472+0.77%
- October 20, 202621°
- BIST10011,798+3.22%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,140.90-0.46%
- INTEREST37.00%-1.00
- BITCOIN82,472+0.77%
- October 20, 202621°
U.S.-Iran tensions push Brent crude above $90 a barrel
The resumption of clashes between the United States and Iran and concerns over energy supplies lifted Brent crude to $91.50 a barrel. Rising oil prices increased inflation pressures and strengthened expectations that the U.S. Federal Reserve will raise interest rates in October, weighing on global stock markets.
The resumption of clashes between the United States and Iran increased concerns about the future of energy supplies. The development pushed Brent crude above $90 a barrel, while rising geopolitical risks accelerated the move out of riskier assets in global markets.
December Brent crude futures rose 3.6% to trade at around $91.50 a barrel. U.S. President Donald Trump's new threat to attack Iran and concerns that energy flows through the Strait of Hormuz could be disrupted for an extended period contributed to the rise in oil prices.
Trump announced that the United States would retaliate after Iran targeted U.S. air bases in Jordan with ballistic missiles. Russia's extension of its diesel export ban through September 30 also increased concerns about refined-fuel supplies.
Expectations of a Fed rate hike came to the fore
Concerns that rising oil prices could increase inflationary pressures strengthened expectations that the U.S. Federal Reserve will raise interest rates in October. While market pricing largely anticipated an October rate hike, expectations could strengthen further if the U.S. nonfarm payrolls report comes in strong.
Speaking at the meeting of G20 finance ministers and central bank governors, U.S. Treasury Secretary Scott Bessent said economic growth was the G20's top priority.
Fed Chair Kevin Warsh said during a session on growth that inflation and growth were a matter of choice, adding that growth in the U.S. economy appeared to have strengthened. Warsh said they would address questions concerning capital expenditure and productivity.
Warsh also spoke during the banking session, highlighting the broad range of lending institutions in the United States and the depth of its financial markets. Stressing the importance of a safe, sound and competitive banking system, Warsh said they would continue to remain focused on reforms.
U.S. Treasury yields and New York stocks declined
Rising oil prices and expectations of a rate hike lifted the yield on the U.S. 10-year Treasury note to 4.79%. The yield thus reached its highest level since January 2025. The dollar index rose 0.1% to 99.5, while gold fell 0.5% to $4,430 an ounce.
U.S. stocks ended the first trading day of the week lower as geopolitical tensions weighed on markets. The Dow Jones fell 0.7%, the S&P 500 declined 0.33% and the Nasdaq dropped 0.12%. U.S. stock-index futures opened the new day mixed.
European stocks faced greater selling pressure
Bond selling and Iran-related geopolitical tensions, which heightened inflation concerns, drove European markets lower on the first trading day of the week. Germany's 10-year government bond yield rose to 3.32%, reaching its highest level in 15 years amid concerns over the rise of the far right.
The London Stock Exchange was closed for a public holiday. Rising financing costs across Europe created selling pressure, particularly on real estate and technology stocks.
Germany's consumer price index rose 0.2% month on month and 2.9% year on year in August. The data came in slightly above expectations. France's CAC 40 fell 0.79%, Germany's DAX 40 declined 1.17% and Italy's FTSE MIB 30 lost 0.01%. European stock-index futures also opened lower.
Risk appetite weakened in Asian markets
Asian stocks traded predominantly lower as rising oil prices, geopolitical risks and higher bond yields weighed on sentiment.
Japan's 10-year government bond yield reached 3% for the first time since 1996 after reports that Scott Bessent wanted the Bank of Japan to raise interest rates more aggressively.
China's RatingDog manufacturing PMI rose to 51.5 in August from 50.9. The data pointed to continued demand in the manufacturing sector, while cost pressures caused by domestic-demand problems and geopolitical risks were assessed as persisting.
South Korea's exports rose 68.7% year on year in August, exceeding expectations. The data showed that global demand, particularly for technology products, remained strong.
Near the close, the Kospi fell 0.1%, the Nikkei 225 declined 0.1% and the Hang Seng dropped 1%. China's Shanghai Composite traded flat.
Borsa Istanbul also ended the day lower
The BIST 100 index ended the day down 2.10% at 14,334.06 points after trading predominantly lower in the previous session. The August futures contract based on the BIST 30 index on Borsa Istanbul's Futures and Options Market also fell 1.2%.
The dollar/Turkish lira pair ended the previous day flat at 48.2560 and traded at 48.2770 at the opening of the interbank market.
Turkey's manufacturing Purchasing Managers' Index will be followed domestically, while U.S. JOLTS job openings, global manufacturing PMI data and euro area inflation will be monitored abroad. Technical assessments identified 14,200 and 14,100 points as support levels and 14,400 and 14,500 points as resistance levels for the BIST 100 index.
Data to watch
- 10:00: Turkey's August manufacturing PMI
- 10:55: Germany's August manufacturing PMI
- 11:00: The euro area's August manufacturing PMI
- 11:30: The United Kingdom's August manufacturing PMI
- 12:00: The euro area's August consumer price index and July unemployment rate
- 16:45: The United States' August manufacturing PMI
- 17:00: The United States' August ISM manufacturing PMI and July JOLTS job openings
Source: Anadolu Ajansı
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