ECB's announcements did not quite meet the market expectations, which was to cut the bond-buying program by half. However, it kept interest rates as they were and announced that there is a high chance to cut the bond-buying program by 30B Euros during the 2018 January-October period. Investors took this explanation as less "hawkish" than expected and boosted the European benchmark index STOXX 600 by 1.07% to 391.27 Euros. The positive sentiment continues and create pressure on the EUR/USD to decline. Euro lost value by 0.22% against the US dollar and came down to 1.1625$.
On the other hand, as the "Taylor" name becomes more robust than "Yellen", the 10-year US government bond yield keep its up-move trend. The yields touched to 2.454% with the parallel incline in the US dollar index, which is being traded at 94.86$.
The benchmark indexes on Wall Street continued their momentum with the strong earning data of the companies. All the indexes inclined except NASDAQ, which seemed to have a respite. However, the indexes are still at their peak levels.
Due to Wall Street, Asian markets also had a positive sentiment. All the Asians markets inclined except Taiwan and Australia.
Strengthening dollar and euro seem to keep risks at high levels for the Turkish markets, which caused a negative opening for BIST 100.
The local market seems to be confused with the increasing bond yields which the 1, 2 and 5 years touched to 12%.
However, the continuation of the positive sentiment is expected in the local market as the global funding/borrowing rates are still low.