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Global Markets Lose Momentum

Published 10/05/2017, 02:44 AM
Updated 07/09/2023, 06:31 AM

* The tailwind keeps up for the global financial markets, however it seems to be losing some momentum.

* European markets took a respite and declined. The main reason is Catalonians, which will soon go for independence. The political stress affected the Stoxx 600 index, which decreased by %0.08 to 390.40.

* The loss of momentum mostly affected the US markets, which managed to close in the green area. NYSE, DJA, S&P 500 and Nasdaq increased by %0.01, %0.08, %0.12 and %0.04 in order. The ADP nonfarm employment change, which announced 135K (better than 125K expectation), supported the markets. Markit composite and services PMI data also showed growth continuation. However, there weren't any comments from Yellen about monetary policy, which could affect US assets and the US dollar. Today announcements of FOMC members will be watched for the US and global markets.

* Parallel to the "loss of the impulse" theme, some profit-taking actions took place in the Asian market's morning session. iShares MSCI All Country Asia ex Japan (NASDAQ:AAXJ) ETF lost %0.08 value and traded at 73.55$. Topix and Nikkei indices also lost %0.17 and %0.01 amount in order.

* The decrease in the risk appetite and increased demand for safe havens is noticed by the increasing demand for the ten-year US and Japanese government bonds. The bonds' yields continued to decrease for the straight second day.

* There is no news for the local Turkish market. Therefore, due to global conditions, a flat to limited positive opening should be expected from BIST 100.

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* Conditions still support the incline possibility in the USD/TRY, which appreciated 0.17% in the morning session and traded at 3.57 TL.

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