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Market Watch: October 23, 2017

Published 10/23/2017, 05:04 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/TRY
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NDX
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EUR/TRY
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US500
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DX
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1YMZ24
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JP10YT=XX
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NYA
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STOXX
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Due to all political stress in EU, such as Catalonia vs Spain and North Italy vs Italy, the benchmark index STOXX 600 managed to close %0.26 up to 390.13 Euro. However, on a weekly basis after six months of up move trend, STOXX 600 declined %0.3 for the first time. It is clear that EU has hard times to keep "the unity" together. It looks like the political tension in Spain triggered other minority moves in the whole union. BREXIT is one of the most significant examples of the countries, which want to separate itself from the EU.


*On the other hand, the prices don't seem to reflect the political tension. However, the EUR/USD party continues to decline as the US dollar gains strength from the US budget, which was approved by the Senate. The expectations of "tax reform" increased the optimistic sentiment on the US markets and supported the indexes for the new records. Dow Jones 30 increased by 0.71%, Nasdaq by 0.36%, S&P 500 by 0.31% and NYSE by 0.41%. What took the most attention the corporates who bought back their shares due to tax reform expectations. The US dollar continued to increase by 0.07% this morning to 93.77$. As the risk appetite inclined, the ten year US bonds' yields inclined to %2.381 level.

The elections in Japan, which Abe won, gained positive sentiment for the Asian markets. There is an expectation on the economic policy in Japan, which will continue to its stimulus program. Therefore, the 10-Year Japanese bonds' yields declined by 2.74%. The Turkish markets opening expectation was 0.10% positive. However, after the news on Reuters (which I have heard it appeared than deleted) about the punishment for the Turkish Banks on the Zarrab and Iran case, negative sentiment dominates the day. The increase in USD/TRY and EUR/TRY continues to support the sales in the index. The up move trend has a high chance to continue as the VISA crises, the rumours on the Turkish Banks and Turkey's internal political tensions keep increase.

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