Market Opening: What Are Investors' Favorites on November 10th?

Market Opening: What Investors Are Focused on November 10th?

After a week dominated by pronounced uncertainties in global markets, the new week is starting with an optimistic atmosphere. The possibility of the U.S. government ending its shutdown that has lasted over 40 days is positively reflecting on the markets. The agreement reached between Democrats and Republicans regarding a temporary budget is opening the doors for federal agencies to reopen.

U.S. Economic Data Pipeline Opening Up

The government's move to reopen is expected to allow long-awaited public services and the flow of economic data to return to normal. During the 41-day shutdown, only limited data had been obtained. This situation had made it difficult for the Federal Reserve (Fed) to provide clear guidance on monetary policy. With the reopening of the government, the release of CPI and PPI data could clarify the differences of opinion among Fed members. The likelihood of a rate cut in December is priced at 63% on the FedWatch tool.

Market Electrification and Data Calendar

The most important agenda item of this week will be the intensification of the data calendar with the reopening of the government. Expectations for the inflation data, which is expected to be released on November 14th, are that the U.S. CPI will hover around 3%. However, it remains uncertain whether this data will be announced. Additionally, statements from Fed members will be significant factors affecting market dynamics.

European and Asian Markets

The Germany ZEW confidence index and the UK's third quarter growth data are highlighted on the agenda of European markets. On the other hand, in China, consumer prices increased by 0.2% in October, but this increase is considered to be temporary. Continued deflationary pressures pose a risk of weakening the spending and production cycle in the Chinese economy.

Commodity and Stock Markets

On the commodity front, gold is stabilizing around $4,000 due to weak employment data and the possibility of rate cuts. If gold prices surpass $4,050, they can rise up to $4,100. Meanwhile, oil prices are declining due to concerns over oversupply. Brent oil is trading at $66.80, while WTI is at $62.60.

Domestically, the Central Bank of the Republic of Turkey (CBRT) has released its last Inflation Report of the year. The bank raised its CPI forecast for the end of 2025 from 27% to 32%. The BIST 100 index showed a weak trend, led by banks.

Investors are closely monitoring industrial production, the current account deficit, and the CBRT market participants' survey. Additionally, the balance sheet announcement day may create significant impacts on the stock market.