- BIST10011,722-2.89%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,178.40+0.20%
- INTEREST37.00%-1.00
- BITCOIN81,293-1.02%
- October 16, 202612°
- BIST10011,722-2.89%
- USD49.42+0.06%
- EUR55.41+0.20%
- GOLD4,178.40+0.20%
- INTEREST37.00%-1.00
- BITCOIN81,293-1.02%
- October 16, 202612°
Hormuz tensions shake markets as Brent crude rises above $97
Mixed signals from U.S. employment data, the Federal Reserve’s interest-rate decision and developments in the Middle East shaped the search for direction in global markets. Brent crude began the new week at $97.3 per barrel, up 1.1%.
Trading in global markets began the week under the influence of mixed employment indicators from the U.S. economy and expectations surrounding the Federal Reserve’s interest-rate decision next week. Developments in the Middle East also remained a focus for markets, particularly through their impact on energy prices.
ADP private-sector employment data released in the United States last week pointed to a loss of momentum in the labor market. An increase in nonfarm payrolls, however, led to assessments that the economy was maintaining its strong performance. The concentration of the increase in hospitality, food services and the public sector also prompted comments that the rise could be seasonal.
Money markets priced in a 58% probability that the Federal Reserve would raise its policy rate by 25 basis points at next week’s meeting, compared with a 42% probability of leaving rates unchanged. Inflation data due in the United States this week are expected to shape expectations surrounding the rate decision.
Cleveland Fed President Beth Hammack said monetary policy was not restrictive. Hammack said inflation remaining above the target for longer would make it harder to reduce price increases and stated that it was time to act.
U.S. President Donald Trump argued that the employment data had tripled expectations beyond his own forecasts and said interest rates should be lowered. Trump said markets should rise following the strong data and stated that economic growth would not cause inflation.
Optimism in the artificial intelligence sector also supported risk appetite. OpenAI announced that the GPT-6 Astra model had been made available to a limited number of users. The model was described as capable of managing complex computer systems, filling out spreadsheets and designing websites.
Expectations of increased investment in artificial intelligence strengthened demand projections for semiconductor companies. In South Korea, SK Hynix shares rose 7.4%, LG Electronics shares gained 5.1% and Samsung Electronics shares increased 5%.
U.S.-Iran developments support oil prices
Developments involving the United States and Iran increased concerns about energy supplies, sustaining the rise in oil prices. After November-dated Brent crude futures ended the previous week up 0.8% at $96.3 per barrel, they began the new week up 1.1% at $97.3.
Iran’s Islamic Revolutionary Guard Corps announced that a U.S. aircraft carrier and a destroyer involved in the naval blockade of Iranian vessels had been targeted with ballistic missiles. Mohsen Rezaei, secretary-general of Iran’s Supreme National Security Council, announced that a new corridor agreement concerning the entrances and exits of Oman and the Strait of Hormuz would be signed in the coming days.
The yield on the U.S. 10-year Treasury note ended the week at 4.78% and began the new week at 4.79%. The dollar index moved sideways at 99.2, while spot gold traded at $4,396 per ounce after falling 0.8%.
Energy concerns in Europe, AI impact in Asia
Investors in Europe are focused on the European Central Bank’s monetary policy decision. The continued high tensions in the Middle East and concerns about the impact of energy prices on European economies contributed to European index futures starting the week lower.
Germany’s Alternative for Germany party won the state parliament election in Saxony-Anhalt with 43.8% of the vote but failed to secure the majority required to govern alone. On Friday, Italy’s FTSE MIB 30 fell 0.28% and France’s CAC 40 declined 0.09%, while Germany’s DAX 40 rose 0.17%.
Expectations surrounding artificial intelligence investment came to the fore in Asian markets. Japan’s Nikkei 225 rose 1.9% and South Korea’s Kospi gained 4.1%. China’s Shanghai Composite fell 0.2%, while Hong Kong’s Hang Seng declined 1.2%. The dollar-yen exchange rate moved sideways at 156.09 in Japan.
Türkiye announces its 2027-2029 program
On Borsa Istanbul, the BIST 100 index ended Friday up 0.57% at 14,012.42 points. The dollar/Turkish lira exchange rate ended Friday at 48.4330 and began the new week at 48.4390 in the interbank market.
Vice President Cevdet Yılmaz announced the Medium-Term Program covering the 2027-2029 period at the Presidential Complex. Yılmaz said they expected inflation to resume its decline in the final quarter of 2026 and reach 28.4% at the end of the year.
Yılmaz said Türkiye’s economy would grow by 3.3% in 2026. He noted that the growth rate was projected to reach 4.2% in 2027, 4.6% in 2028 and 5% in 2029.
The day’s data calendar includes Germany’s July industrial production, the euro area’s September investor confidence and second-quarter growth data, as well as Türkiye’s August Treasury cash balance. U.S. markets will be closed for Labor Day.
Stay Updated with RuskiGazeta
Subscribe to be informed about special news, developments and announcements. We will keep you informed.
By signing up, you agree to our Privacy Policy
