- BIST10011,634+1.78%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,142.10-0.43%
- INTEREST37.00%-1.00
- BITCOIN81,359-0.59%
- October 20, 202620°
- BIST10011,634+1.78%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,142.10-0.43%
- INTEREST37.00%-1.00
- BITCOIN81,359-0.59%
- October 20, 202620°
Iran-US conflict in Middle East drives up oil prices, hits global markets
Military tensions between Iran and the US in the Middle East pushed Brent crude to $88.9 amid global supply concerns. The rise in oil prices is shaping US Federal Reserve rate expectations and the course of global stock markets.
Military clashes between Iran and the US in the Middle East triggered turbulence in global energy markets. US Central Command (CENTCOM) announced it struck military coastal surveillance and air defense facilities, naval forces, and missile and drone storage sites in Iran. Iran said the US targeted the Darhovin Nuclear Power Plant, calling the attack a 'dangerous undertaking'.
Risks to the Strait of Hormuz, a critical oil transit route, heightened global energy supply fears. Reports of tankers being hit in the strait sent Brent crude to $88.9 a barrel, its highest since June 12. Tanker transit through the Strait of Hormuz is notably declining.
US Monetary Policy and Inflation Concerns
Rising oil prices are fueling inflation fears and shaping expectations for the US Federal Reserve's (Fed) monetary policy. Money markets now price in a 70% chance of a 25-basis-point rate hike in September, with two hikes seen over the next 12 months. Cleveland Fed President Beth Hammack said persistently high inflation is a bigger concern.
The US 10-year Treasury yield stood at 4.55%, while the dollar index edged down 0.1% to 100.7. Gold slipped 0.2% to $4,010 per ounce.
Mixed Trends in European and Asian Markets
European index futures started the week mixed. UK Prime Minister Andy Burnham is expected to deliver his first speech today. The European Central Bank (ECB) is forecast to hold rates steady at this week's meeting and then hike in September.
In Asia, Chinese and Hong Kong markets edged higher while South Korea's Kospi turned negative. Tech stocks fell sharply: SK Hynix dropped 2.3%, Samsung Electronics 4%, LG Electronics 4.9% and Hanmi Semicon 8.7%. Japanese markets were closed for Marine Day, keeping trading volumes thin. China kept its loan prime rates unchanged: the one-year rate at 3% and the five-year rate at 3.5%. Near the close, the Kospi was down 2.8%, while the Shanghai Composite rose 1.2% and the Hang Seng gained 2.2%.
Turkey Markets and Data Calendar
Turkey's BIST 100 index closed Friday down 1.90% at 13,981.05 points. USD/TRY traded at 47.1750. Fitch Ratings affirmed Turkey's 'BB-' rating with a stable outlook.
Analysts said the domestic focus today will be on the CBRT market participants survey, international investment position data, and foreign PPI; abroad, Germany's PPI and the US leading index will be watched. For the BIST 100, support is seen at 13,900 and 13,800 points, with resistance at 14,100 and 14,200.
Source: Anadolu Ajansı
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