Global markets focus on Powell's statements

By Murat Aslan

ISTANBUL (AA) - Global markets are acting cautiously ahead of US Fed Chairman Jerome Powell's statements in the Senate on Tuesday.

Uncertainties regarding monetary policy in the US continue to make market conditions difficult for investors, while Powell's statements on Tuesday and Wedneday and non-farm employment data on Friday are expected to increase the volatility in asset prices.

Analysts noted that Powell is expected to use the Senate session as an important opportunity for verbal guidance before the Fed's meeting on March 21-22.

The bank is expected to increase interest rates by 25 basis points in the next three meetings, while uncertainties regarding the steps to be taken at the July meeting continue.

On Monday, the S&P 500 index rose by 0.07% and the Dow Jones index rose by 0.12% in the New York stock market, while the Nasdaq index decreased by 0.11%; on Tuesday index futures contracts in the US started the new day with a limited rise.

While uncertainties regarding monetary policies continue to be influential on the markets on the European side, a mixed course was observed in the stock markets Monday.

While the members of the European Central Bank (ECB) continued their verbal guidance, Robert Holzmann, the most hawkish member of the bank, stated that he supported an increase of 50 basis points in the next four meetings.

Another member, Mario Centeno, stated that the inflation was realized below the projections of the bank and stated that the hawkish steps should be slowed down.

On Monday, with these developments, the DAX 40 index increased by 0.48% in Germany, the CAC 40 index increased by 0.34% in France and the MIB 30 index increased by 0.45% in Italy, while the FTSE 100 index decreased by 0.22% in the UK.

The cautious stance in the US has moved to Asia before Powell's statements.

On Tuesday, Australian Central Bank increased its policy rate by 25 basis points to 3.6%.

China's foreign trade surplus reached $116.9 billion, according to official figures on Tuesday.

With these developments, the Nikkei 225 index in Japan rose by 0.3% and the Kospi index in South Korea by 0.2%, while the Hang Seng index in Hong Kong was down 0.4% and the Shanghai composite index in China decreased by 0.6%.

In Türkiye, the BIST 100 index in Borsa Istanbul ended the day at 5,392.31 points, up 3.45%.

On Monday, the Saudi Arabian Development Fund announced that an agreement was signed for a deposit of $5 billion in Central Bank of the Republic of Türkiye (CBRT).

*Writing by Gokhan Ergocun