Istanbul
Global markets remained mixed after the US Federal Reserve Chairman said data for the first quarter of the year did not yet inspire confidence.
“The latest inflation data again showed a modest improvement. Further, better data will strengthen our confidence that inflation is sustainably heading toward 2 percent,” Fed Chairman Jerome Powell said in a monetary policy report to the U.S. Senate on Monday.
In the U.S. market on Monday, the Nasdaq index rose 0.14%, the S&P 500 rose 0.07%, while the Dow Jones Industrial Average fell 0.16%.
“Based on our latest assessment of inflation, it is appropriate to ease the intensity of monetary policy restraint after keeping interest rates unchanged for nine months,” the European Central Bank’s (ECB) Governing Council said on Tuesday.
“The latest inflation data have given us confidence,” ECB governing council member Mario Centeno said in June. “If our baseline scenario is confirmed, we continue to expect several further rate cuts this year.”
The dollar index rose 0.2% to 105.1, slightly below the previous day’s close, while the price of Brent crude oil stabilized at $84 a barrel, extending its downward trend for the fourth consecutive trading day.
The yield on the 10-year U.S. Treasury note fell 0.2% to 103.2 after the Fed chairman’s speech, while gold prices rose 0.2% to trade at $2,367 an ounce.
On Monday, the UK’s FTSE 100 index fell 0.66%, France’s CAC 40 index fell 1.56%, Germany’s DAX 40 index fell 1.28% and Italy’s MIB 30 index fell 0.53%.
European index futures trading opened mixed on Tuesday.
In Turkey, the Istanbul Stock Exchange’s BIST 100 index closed at 10,796.57 points, down 0.62% from the previous day’s close, while USD/TL was trading at 32.9090 at the opening of the interbank market on Tuesday.
Last weekend’s French election results saw the left-wing New Popular Front come out on top with 178 lawmakers, but political uncertainty as coalition talks are needed has had a negative impact on the country’s credit rating.
Towards the close, Japan’s Nikkei Stock Average rose 0.3%, South Korea’s KOSPI index rose 0.1%, Hong Kong’s Hang Seng Index rose 0.2%, while China’s Shanghai Composite Index was down 0.4%.
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