Global markets are positive Global market

Macroeconomic data announced in the USA, developments in the bond market and the course of technology stocks continue to be decisive on the direction of global markets.

Producer Price Index (PPI) in the USA increased by 1.3 percent monthly and 6.3 percent annually in September, above expectations. Producer inflation in the country has reached its highest level since March 2022 on a monthly basis and since December 2022 on an annual basis.

Following the Consumer Price Index (CPI) data announced in the country, the acceleration in the increase in PPI has led to increased concerns about permanent price pressures.

Expectations come to the fore that the US Federal Reserve (Fed) may raise new interest rates as part of the fight against inflation that is above the target. The fact that retail sales in the USA increased by 0.8 percent on a monthly basis in September, above expectations, causes the predictions that the bank will continue its tight monetary policy to remain strong.

The selling pressure seen on technology stocks yesterday due to concerns that high interest rates may negatively affect artificial intelligence investments has given way to a recovery trend today, following the optimistic evaluations made by US Federal Reserve (Fed) President Kevin Warsh on the artificial intelligence theme.

On the other hand, continuing concerns about the technology sector and increasing concerns about economic growth caused investors to turn to bonds.

This situation was effective in the decline in bond interest rates. A horizontal trend stands out today in the US 10-year bond interest rate, which decreased by 11 basis points from 5.19 percent to 5.08 percent yesterday. The decrease in selling pressure in the bond market also had a positive impact on the stock markets.

As the selling pressure in the bond market eased, the dollar index decreased by 0.2 percent to 101.9, while an ounce of gold is traded at $4,171, just above the previous close.

Source: TRT Haber Ekonomi RSS (Open Press / Translated Full Text)