Global Markets Labor and Trade Data Created Uncertainty

Global Market Uncertainties Catching Attention

Global equity markets shifted direction amidst hopes for a trade agreement between the US and China and concerns over a possible correction in technology stocks. Warnings from major Wall Street executives like Morgan Stanley and Goldman Sachs regarding potential market adjustments have led to a decrease in investors' risk appetite.

Labor Data Sending Mixed Signals

In the US, restricted access to economic data due to the government shutdown is complicating investors' decision-making processes. Important inflation data for October is also expected to be delayed. According to data released by the ADP Research Institute, private sector employment increased by 42,000 in October. Analysts note that this increase has alleviated some concerns about the weakness in the labor market.

However, the report released by Challenger, Gray & Christmas indicates that the number of layoffs in October rose by %175 year-on-year to 153,074, marking the highest figure for an October since 2003. This development has raised questions among investors regarding the strength of the US economy.

Fed Interest Rate Expectations and Market Reactions

These uncertainties in the markets are also affecting expectations for possible interest rate cuts by the Fed. The likelihood of the Fed cutting rates in December is priced at %67. In the previous week, the S&P 500 lost %1.63, the Nasdaq declined by %3.04, and the Dow Jones dropped %1.21 on the New York Stock Exchange. Gold prices decreased by %0.03, closing at $4,001.38 per ounce.

European and Asian Markets Seeking Direction

In European markets, the adverse effects of the economic data continue to be felt. The Bank of England (BoE) maintains its policy interest rate at %4, while the BIST 100 index in Turkey closed down by %0.43 at 10,943.37 points. Next week, Turkey's balance of payments statistics will be closely monitored.