- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,181.10+0.26%
- INTEREST37.00%-1.00
- BITCOIN81,438-0.08%
- October 17, 202613°
- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,181.10+0.26%
- INTEREST37.00%-1.00
- BITCOIN81,438-0.08%
- October 17, 202613°
US markets rise as falling oil prices push Brent down to $103.4
Declines in oil prices and bond yields increased global risk appetite amid expectations that inflationary pressures could ease. While US stocks rose, the BIST 100 index on Borsa Istanbul gained 2.95%.
Declining energy costs and falling bond yields supported buying across global markets. Expectations that the fight against inflation could become easier if the US economy maintains its strength and oil prices do not rise further strengthened the positive outlook, particularly in US markets.
Analysts said these conditions could help the US Federal Reserve move closer to its inflation target. The prospect that the effects of tight monetary policy on the economy could become more manageable was also among the factors supporting risk appetite.
The price of November-dated Brent crude fell 1.3% to $103.4 per barrel. While concerns over clashes between Saudi Arabia and the Houthis in Yemen persisted, expectations that alternative routes could be found for oil shipments from the Middle East put downward pressure on prices.
US President Donald Trump said he was at a critical decision point over how the war with Iran would proceed. Trump said he needed to decide on intervention against Iran.
US stocks rise
The yield on the US 10-year Treasury note moved sideways at 4.94%. Gold rose 0.5% to $4,363 per ounce, while the dollar index remained above 100 amid expectations that the Fed would maintain its tight monetary policy.
The Dow Jones index rose 0.61%, the S&P 500 gained 1.14% and the Nasdaq advanced 1.69%. The average price of diesel in the US reached approximately $6.40 per gallon, setting a new record.
The number of people filing initial claims for unemployment benefits fell to 196,000 in the week ended Sept. 12, below market expectations. US stock-index futures also began the new day higher.
Interest rates and inflation in focus in European markets
European stocks gained on expectations that geopolitical tensions could ease and that falling oil prices could reduce companies' costs. Gains in shares of automotive, telecommunications and retail companies supported regional indexes.
The Bank of England kept its policy rate at 3.75%. The decision was approved with six members voting to keep rates unchanged and three voting for a 25-basis-point increase.
The bank projected that inflation could rise to slightly above 4% in the first quarter of 2027. The bank, which said it would reduce its bond portfolio through 2034, planned an average annual reduction of £46 billion.
BoE Governor Andrew Bailey said monetary policy could be tightened further if conflicts in the Middle East were prolonged and second-round effects increased. In the euro area, consumer prices rose 0.4% month-on-month and 3.2% year-on-year in August.
The FTSE 100 in the UK rose 1.19%, France's CAC 40 gained 0.57%, Italy's FTSE MIB advanced 0.80% and Germany's DAX increased 0.77%. European stock-index futures began the day mixed.
Bank of Japan decision watched in Asia
Falling energy prices and a recovery in technology stocks influenced Asian markets. The Bank of Japan raised its policy rate by 25 basis points to 1.25%; the decision passed by a 7-2 vote.
The BoJ said it expected the Japanese economy to continue its moderate growth. The bank said developments in the Middle East and rising demand for artificial intelligence posed inflationary risks, adding that rate increases could continue depending on economic activity and financial conditions.
The lack of unanimity in the rate decision increased uncertainty over the sustainability of tight monetary policy in Japan. The dollar-yen exchange rate rose 0.2% to 157.2, while inflation in Japan stood at 1.9% in August, slightly below expectations.
Near the close, the Kospi gained 2.6%, the Nikkei 225 rose 1.8%, the Hang Seng advanced 0.7% and the Shanghai Composite increased 1%.
BIST 100 index gains 2.95%
The BIST 100 index on Borsa Istanbul ended the day up 2.95% at 13,509.76 points. The October futures contract based on the BIST 30 index also rose 0.2% in the evening session compared with the regular-session close.
The dollar/Turkish lira exchange rate closed the day up 0.2% at 48.7330. At the opening of interbank trading, the rate was quoted at 48.7660, 0.1% above the previous close.
The Central Bank of the Republic of Türkiye said it would closely monitor liquidity conditions and take additional measures if deemed necessary. The Capital Markets Board decided to suspend trading in all investment funds traded on TEFAS belonging to seven portfolio management companies and to liquidate some funds.
The Banking Regulation and Supervision Agency decided that banks would not count their own shares repurchased after Sept. 16 as a deduction from core capital through Dec. 31. These shares will also be excluded from calculations of amounts subject to credit and market risk.
Analysts view 13,700 and 13,800 points as resistance levels for the BIST 100 and 13,400 and 13,300 points as support levels. Markets will monitor Türkiye's international investment position for July, US industrial production and capacity utilization for August, UK retail sales, German producer prices and the euro area's current account balance.
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