What You Need to Know Before the Market Opens January 28

Market Opening Developments of Interest

Pricing dynamics in global markets are shaped by trade policies, central bank expectations, and geopolitical risks. Today, in the US markets, the focus is expected to be on the Fed's interest rate decision and the messages from Chairman Powell.

Reshaping of Global Trade

Since President Trump's "America First" approach took office, uncertainties in Washington's relationships with its allies have driven many countries to seek alternative trading partners. In this context, the US is trying to position itself as a more predictable player by deepening its trade relations with China, Canada, and India. For instance, a preliminary agreement was signed between Canada and China covering electric vehicles and agricultural products, while a comprehensive free trade agreement was reached between India and the European Union.

Expectations Ahead of the Fed's Interest Rate Decision

This evening at 22:00, the Fed's announcement regarding its interest rate decision is of great importance. While no changes in interest rates are expected, the wording of the decision and Powell's statements may provide significant clues about the timeline for future rate cuts. Additionally, the earnings season is being closely monitored for stock performance, with technology stocks such as Microsoft (MSFT), Meta (META), and Tesla (TSLA) being followed eagerly by investors.

Current Situation in Currency and Commodity Markets

On the currency front, the weakening dollar is drawing attention in the markets. Following Trump's statements, the dollar index has reached its lowest levels in recent years, while the euro/dollar parity has climbed to its highest level since 2021. The decline of the dollar has caused gold prices to gain momentum, pushing gold above $5,200.

General Market Outlook

Domestically, the Istanbul Stock Exchange is experiencing a strong rally, although some sales are observed in BIST 30 stocks outside of banking and automotive sectors. Overall, this current rally is considered to not disrupt the main trend and to be digested healthily. Maintaining the BIST 100 index above the 13,000 level could sustain the potential for record highs. Moreover, in technical analysis, the 13,200 and 13,400 levels stand out as important targets.