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Low US Inflation Beats The Tension

Published 08/14/2017, 03:37 AM
Updated 07/09/2023, 06:31 AM


* Last week, the shock effect of the tension between the USA and North Korea seemed to weaken. With the boost of the inflation data, which is announced worse than the expectation, the US indices closed the week in the green area, where to reactions to the three days sales supported.

* As the demand for safe harbours declined, investors risk asset appetite increased once again, and the wind started to blow from behind once again for world stocks.

* 10 - year US government bonds' yields increased %1.12 where Japanese 10 - year government bonds decreased %1.85 despite to 4.0% secure annualised growth data. There is a possibility that the comeback of the traders from the vacation which can explain the red zone in Japanese markets.

* Notwithstanding the Japanese markets, and worsening IP conditions in Chinese markets, other Asian indices (included China) continue to travel in the green area. The reactions to the three days abrogating transactions seem to overcome the economic data.

* The tension is still the key theme for the world indices. However, due to liberation day for the North Korea from Japan on Tuesday, the markets will ease the tension for a close time. The news flow on this issue will be watched.

* For TL and other emerging markets assets', the inflow of the money appears to continue as the US inflation data didn't catch the expectation. There is also Minneapolis FED president who announced that "the US economy needs time to increase the interest rates." supports the back wind for the global markets.

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We are expecting a green area opening/day for the emerging markets due to eased tension and Asian markets.

* Today, Chinese M2 supply, EU's IP, Turkish Inflation Exp. for the year end and the three months T-Bill of the US will are the key events for the global markets.

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