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Tensions Rule the Global Markets

Published 09/26/2017, 02:25 AM
Updated 07/09/2023, 06:31 AM
  • Volatility indicators are on uptrend move as the tension between North Korea and the USA escalates.
  • Due to increased geopolitical stress, the US stocks managed to close in the red area, where the ten-year US government bonds' yields decreased to the %2.22, and the US dollar index increased, for the second day, to 92.67 level.
  • This shows that the US government bonds are again on the list of safe harbours, which people increased the demand for it when risk appetite declined such as Japanese government bonds' demand.
  • The Asian markets followed a mixed course due to increased tension between North Korea and the US. iShares MSCI All Asia Excluded Japan decreased by %1.82.
  • Due to increased stress, problems with Kurdish referendum and parallel to the Asian markets a 0.25% - 0.30% negative sentiment is expected in BIST 100. The course below the Fibonacci support levels and moving averages also strengthen the negativity in BIST 100.
  • The decline possibility increases the uptrend of the USD/TRY. For the course of the currency, the following statements from FOMC will be watched. The continuation of the "hawkish" sentiment is expected from the FED's presidents.
  • The news flow on the Northern Iraq and the Kurdish referendum and the tension between the US and North Korea will be the primary focus of the global markets. On the other hand, the following statement of Merkel and ECB will be on the agenda.

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