Developments That Markets Will Follow This Week

Developments That Markets Will Follow This Week

Global markets have turned their eyes to the decisions of the United States, Europe and Japan central banks this week. Although the increase in the number of cases in the coronavirus epidemic decreased and the estimates for countries to relax the restrictions affected the markets positively, they continued their concerns with the data released last week regarding the economic activity. The manufacturing and service sector Purchasing Managers Index (PMI) data released in the previous week reveal that the shrinkage in the global economy continues, while the data for this week are in the United States on Wednesday and the first-quarter growth data in Europe on Thursday. In addition to the growth data, the Fed's decisions on Wednesday and the European Central Bank's decisions on Thursday will also have an impact on the direction the markets will follow. The Central Bank of Japan, on the other hand, has eased its monetary policy with the decisions it announced today. Having removed the limit in the government bond purchase program, the Central Bank of Japan increased its corporate bond purchase limit to 20 trillion years. While central banks are not expected to decide to change interest rates this week to reach the results of the financial policies supported by the governments, the ECB is thought to increase its bond-buying program. Dow Jones index increased by 1.11 percent, S&P 500 index increased by 1.39 percent and the Nasdaq index increased by 1.65 percent in the stock market, which has increased with the courage it has found in the USA in the last trading day last week with the improvement in oil prices. Negative momentum occurred in the European stock markets that closed before the US stock markets gained strength. The DAX index fell 1.69 percent in Germany, the FTSE 100 index 1.28 percent in the UK and the CAC 40 index fell 1.30 percent in France. Asian markets, on the other hand, followed a positive course with the supportive policies of the Central Bank of Japan for the new week after the fluctuating course of the previous week. After the Central Bank of Japan lifted the border in the bond-buying program, the close Nikkei 225 index gained 2.7 percent, Shanghai composite index 0.6 percent in China and Kospi index 1.9 percent in South Korea. In Turkey, the last trading day of the week 0.60 percent increase the value BIST 100 Index closed the week from 98758.96 points. As a result, the BIST 100 index increased its value by 0.59 percent compared to the previous week and carried its upward trend to the 5th consecutive week. The dollar rate, which closed the week from 6,9730 by increasing 0.6 percent on a weekly basis, continues its course at 6,9630 levels at the opening of the market today.