Expectation of Recovery in Global Markets Attracts Investors to Risky Assets

Global markets focused on the Fed's interest rate decision to be announced on Wednesday and the ongoing balance sheet season.

The expectation of recovery in global markets attracts investors to risky assets. While the markets focus on the Fed's interest rate decision to be announced on Wednesday and the ongoing balance sheet season, recovery expectations direct investors to risky assets. Although Asia showed a mixed outlook on the basis of the index, the MSCI Asia Pacific Index increased. Hong Kong Hang Seng exhibited a horizontal outlook, while the Japanese Topix and South Korean Kospi index rose. Futures in the S&P 500 index, which completed Friday with an increase of 1.1 percent, started the new week with a plus. The US 10-year bond yield rose by us basis points and climbed to 1.57 percent. The Bloomberg Dollar Index declined by 0.1 percent. Unlike the Turkish Lira, many major developing countries' currencies started the week with gains against the dollar. The rise in emerging currencies was driven by the Taiwan dollar and the South Korean won. This week, the rate decision to be announced by the Fed on Wednesday will be followed in global markets. Fed Chairman Jerome Powell is expected to repeat his message that support is not withdrawn immediately despite the recovery. In addition, companies such as Tesla, Apple, Facebook and banks such as HSBC, UBS, Deutsche Bank and Nomura will announce their balance sheets. Medley Global Advisors Global Macro Strategy Director Ben Emons thinks that the serious leaps in the profitability growth of technology companies can positively affect markets.