What You Need to Know Before the Market Opens - January 29

Things You Should Know Before the Market Opens

In global markets today, the main agenda item is the Fed's monetary policy decision, along with a heavy flow of geopolitical and macroeconomic news. The Federal Reserve decided to keep the policy rate in the range of 3.50%-3.75% with a vote of 10 to 2. Fed Chairman Jerome Powell emphasized that the U.S. economy started the year strongly and highlighted the importance of stability in the labor market.

Fed's Decisions and Market Reactions

Powell's statements draw attention to the fact that inflation is still above the 2% target. While no signal has been given for a rate cut at this time, market expectations indicate that the first cut could take place in the summer months. In this context, a sideways movement is observed in U.S. stock indices. The S&P 500 tested the 7,000 level during the session but was unable to maintain stability there.

Highlighted Sectors and Companies

In affected sectors, energy and technology stocks are showing a relatively strong trend, while areas sensitive to interest rates are experiencing weak performances. Companies such as Microsoft (MSFT), Meta (META), Tesla (TSLA), and IBM (IBM) reported results exceeding expectations in terms of profit and revenue. Increased spending on artificial intelligence and cloud investments has led to profit realizations in some stocks.

Currency and Commodity Markets

In currency markets, the dollar continues to show a weak trend globally. Powell's cautious remarks have pushed the dollar index below critical support levels, causing the euro/dollar parity to approach its highest levels in recent years. This situation is increasing demand for precious metals, with record levels seen in gold and silver prices.

Turkey's Economy and Borsa Istanbul

Borsa Istanbul continues to maintain a strong outlook, lifting the index above the 13,500 level. The rise continues, led by banking stocks, and the approximately 20% performance shown since the beginning of the year is noteworthy. In the bond market, short-term yields are continuing to trend lower due to the impact of the Central Bank of Turkey's interest rate cuts.

Global Fund Inflows

Developments from BlackRock are among the significant factors supporting the rise in Borsa Istanbul. Global fund inflows to Turkey, particularly in large-scale banking stocks, have increased sentiment. Investors are turning their eyes to economic data to be announced in the coming days.

In summary, there are many factors to pay attention to before the market opens. Investors should closely monitor the Fed's decisions as well as global and domestic developments.