Global markets will follow the data agenda Sphere

Markets, which started the week with cautious optimism due to developments regarding energy supply, continued to seek direction towards the middle of the week with inflation data announced in the USA and developments that may affect artificial intelligence investments.

Annual inflation in the USA has reached its highest level in the last 4 months due to the increasing effect of geopolitical risks originating from the Middle East and Russia-Ukraine on energy costs. When inflation was examined on the basis of sub-items, it was seen that rising energy prices continued to play an important role in the increase in CPI.

Following the inflation data exceeding expectations in the USA, the expectation that the US Federal Reserve (Fed) may increase interest rates in the coming period has gained strength. Although it was priced in the money markets that the Fed could raise interest rates a total of 3 times by the end of next year, bond interest rates and the dollar index finished the week with a decline.

Selling pressure in the technology and semiconductor sectors led investors to government bonds. This trend was also influenced by the concern that high interest rates could negatively affect artificial intelligence investments, which have become one of the main engines of the US economy, and the risks that may arise in growth as a result. Due to this situation, predictions that the Fed may not tighten as much as expected came to the fore.

On the other hand, news that Chinese chip manufacturer CXMT has made progress in chip development increased the selling pressure on global technology stocks.

Evaluations on whether the chips developed by the company can be produced at a lower cost compared to existing alternatives have brought about concerns that competition in the sector may intensify and the profitability of large technology companies may be negatively affected.

These developments were among the factors that led investors to reduce their positions in artificial intelligence-focused technology stocks. With the leading sectoral Purchasing Managers Index (PMI) data for October, which will be announced worldwide next week, the financial results of the US technology company Meta and the US electric car manufacturer Tesla will be followed during the accelerating balance sheet season in the USA.

In addition, Fed President Kevin Warsh, at an event he attended within the scope of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, did not provide guidance regarding the decisions to be taken in future meetings, but emphasized the Fed's determination to ensure price stability.

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