Weakness in Equity Markets After Fed Announcements

Equity Markets Weak

Cautious statements by US Federal Reserve (Fed) Chairman Jerome Powell and other Fed officials led to a weak outlook in equity markets. This week, the S&P 500 index fell 0.2% on Wednesday, extending its decline to a second day. This added to investor concerns, with Asia-Pacific markets rising a modest 0.2%, despite a slight rebound in futures.

Fed's Cautious Approach

According to an assessment by Australian market analyst Kyle Rodda, Fed officials used measured language to break the momentum of the long-awaited equity market decline. This could mean mixed signals for investors.

Status of the Dollar in Currency Markets

The dollar continues to perform weakly against the currencies of developed countries as new tariffs come into effect. The Bloomberg Dollar Index fell by 0.1% and Dollar/TL was traded at 41.47 in the morning hours.

Bond Market Developments

Japan's 40-year bond auction saw higher demand than the 12-month average, boosting confidence in long-term assets. Moreover, the US 10-year bond yield was stable at 4.14%.

Oil and Other Commodity Prices

Oil price volatility increased after Donald Trump toughened his comments on Russia. This morning, however, US crude oil is down 0.5% at $64.7 and Brent is down 0.4% at $69. In contrast, gold prices remained stable at $3,740 an ounce.

Copper Price Rise

After Freeport cut its copper sales forecast following the mining accident in Indonesia, copper prices rose to $10,310 a tonne, close to a one-year high.