Global financial markets experience downward trend

7/21/2024 3:39:13 AM

(MENAFN) Global financial markets are currently experiencing a downward trend, influenced by increasing geopolitical risks and ongoing selling pressure that originated from technology stocks in US markets and has now extended globally. This trend is compounded by the broader impact of trade tensions between the US and China, which have exacerbated market volatility. Furthermore, recent macroeconomic data from the US has reportedly provided the Federal Reserve (Fed) with more flexibility in its policy decisions.

Chicago Fed President Austan Goolsbee noted that with the recent cooling in the labor market, there is now a 49 percent probability of the Fed implementing three rate cuts by the end of the year. This reflects market expectations for a more accommodative monetary policy in response to economic conditions.

Meanwhile, European Central Bank (ECB) President Christine Lagarde emphasized that future interest rate decisions will be closely tied to the evolving economic data. However, she did not provide any specific guidance on the timing of the next rate cut.

In the technology sector, shares of Taiwan Semiconductor Manufacturing Company (TSMC) saw a modest increase of 0.36 percent, while Broadcom’s shares rose by 2.9 percent. In contrast, Nvidia’s shares experienced a sharp decline of 2.8 percent on Thursday.

In the US markets, there was a notable downturn on Thursday, with the Nasdaq index falling by 0.7 percent, the S&P 500 decreasing by 0.78 percent, and the Dow Jones Industrial Average dropping by 1.29 percent. Despite this, volatility in the bond markets remained relatively stable. The dollar index is currently at 104.2, and Brent crude oil prices have stabilized at USD83.7 per barrel. The yield on the US 10-year bond closed at 4.20 percent, while gold prices fell by 0.9 percent to USD2,423 per ounce.

In Europe, the FTSE 100 index in the UK rose by 0.21 percent, Italy's MIB 30 index increased by 0.43 percent, and France's CAC 40 index saw a rise of 0.21 percent. However, Germany’s DAX 40 index decreased by 0.45 percent. European index futures opened the day with mixed performance.

In Türkiye, the BIST 100 index on Borsa Istanbul closed at 11,139.46 points, showing a slight increase of 0.05 percent from the previous close. The USD/TRY exchange rate was trading at 33.0801 at the opening of the interbank market on Thursday. Additionally, international credit rating agency Moody's is expected to release its assessment of Türkiye’s credit rating on Friday, which could further impact market sentiments.

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