Category: Industry

European stock exchanges closed higher on Thursday, except the UK, while a rally in US markets got stronger after the Federal Reserve delayed its tampering.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was up 4.3 points, or 0.93%, to close at 467.50.

Germany's DAX 30 index rose 137, or 0.88%, to 15,643, and the French CAC 40 added 65, or 0.98%, to 6,701.

Italy's FTSE MIB was the best performer for the second consecutive day -- gaining 363 points, or 1.41%, to 26,081. Spain's IBEX was up 68 points, or 0.78%, to 8,876 points.

London's FTSE 100 was the only index closing the day in negative territory -- 5 points, or 0.07%, to 7,078.

The Fed said Wednesday that moderation in the pace of asset purchases may soon be warranted, indicating tapering would soon begin, while Fed Chair Jerome Powell said tapering may conclude by mid-2022.

Tapering, the process of scaling back its $120 billion worth of monthly bond purchases, could start in November or December, according to most experts, but the delay provided relief for investors.

US extends rally

Major indices in the US opened strong and extended rallies after the Fed's delay.

The Dow Jones was up with a 555-point jump, or 1.63%, to 34,813 at 12.30 p.m. EDT (1630GMT).

The S&P 500 was up 58, or 1.33%, to 4,454, while the Nasdaq rose 140 points, or 0.95%, to 15,039.

The VIX volatility index plummeted 9.7% to 18.84 and the dollar index was down 0.4% to 93.07.

The yield on 10-year US Treasury notes increased 5.1% to 1.399%,

Precious metals were mixed with gold falling 0.9% to $1,751 per ounce, but silver rising 0.1% to $22.72.

Oil prices were up with Brent crude trading at $77.21 per barrel -- a 1.3% gain. US benchmark West Texas Intermediate was at $73.36, up 1.6%.

SOURCE: ANADOLU AGENCY

The Ukrainian parliament passed a bill Thursday to prevent the influence of oligarchs on politics.

The bill was approved with 279 votes in the 450-seat chamber.

Oligarchs will be forbidden from financing political parties and taking part in large-scale privatizations.

The law wants to stop the threat of excessive influence of oligarchs -- those with significant economic or political power -- on national security.

Ukraine's National Security and Defense Council will decide who fits the criteria to be considered an oligarch.

The law will take effect 10 years after Ukrainian President Volodymyr Zelensky signs it.

SOURCE: ANADOLU AGENCY

Turkey's benchmark stock index closed at 1,401.46 points on Thursday, down 0.43% from the previous close.

Starting the day at 1,409.28 points, Borsa Istanbul's BIST 100 index lost 6 points from Wednesday's close of 1,407.46 points.

The index's lowest value during the day was 1,394.35 points, while its daily high was 1,417.45 points.

The total market value of the BIST 100 was 1.06 trillion Turkish liras ($122.8 billion) by market close, with a daily trading volume of over 17.9 billion Turkish liras ($2.06 billion).

A total of 51 stocks on the index rose, 41 fell, and eight remained unchanged compared to Wednesday's close.

The highest trading volumes were posted by private lender Garanti BBVA, national flag carrier Turkish Airlines, and iron and steel producer Eregli.

Shares of fertilizer producer Ege Gubre performed the best, rising 10%, while stocks of conglomerate Bera Holding dropped the most, 3.53%.

One ounce of gold traded for $1,773.50 by market close, down from $1,777.70 at the previous close, according to data from Borsa Istanbul's Precious Metals and Diamond Markets.

The price of Brent crude oil was up 1.4% to $77.25 per barrel as of 6.49 p.m. local time (1549GMT).

SOURCE: ANADOLU AGENCY

Montenegro's envoy to Ankara has called on Turkish businesses to invest in the Balkan country to achieve the bilateral trade volume target of $250 million by 2022.

Montenegro offers great opportunities to Turkish businesses in tourism, energy, metal processing, furniture, IT and agriculture sectors, Perisa Kastratovic told at a virtual news conference on Thursday.

"If we initiate joint ventures, these are the sectors where can have the best cooperation," Kastratovic said, adding that Montenegro can benefit from Turkey's expertise especially in tourism and furniture.

Stressing that economic diplomacy is Montenegro's priority, Kastratovic said: "Within this context, we see Turkey a significant economic partner, and are open to Turkish companies and investments."

He added: "We want to improve bilateral trade and overall relations with Turkey."

The envoy said foreign trade will help increase and value addition to exports, and create new opportunities and markets.

He said the bilateral "friendly relations" were further enhanced during the COVID-19 pandemic as Turkey was one of the first countries that provided aid to Montenegro.

Ugur Cimen, the chairman of a consulting firm in Montenegro, explained the country's attractiveness for investors citing its qualified labor force, corporate taxation system as well as geographical location.

SOURCE: ANADOLU AGENCY

The US stock market opened higher Thursday after the Federal Reserve opened the door for tapering but delayed its formal start.

The Dow Jones industrial average rose 301 points, or 0.88%, to 34,559 at 9.37 a.m. EDT with investment banking firms JPMorgan, Goldman Sachs and Morgan Stanley all rising more than 1% apiece.

The S&P 500 added 30 points, or 0.7%, to 4,426 and the Nasdaq jumped 68 points, or 0.46%, to 14,965 with BlackBerry soaring 11%.

The Fed said Wednesday that moderation in the pace of asset purchases may soon be warranted, indicating tapering would soon begin.

Fed Chair Jerome Powell later told a news conference that the bank may conclude tapering -- the process of scaling back its $120 billion worth of monthly bond purchases -- by the middle of 2022.

Tapering could begin in November or December but its delay provided relief for investors.

The VIX volatility index, also known as the fear index, plummeted another 8.6% to dive below the critical level of 20 as it sits at 19.07. The dollar index was down 0.36% to 93.12.

The yield on 10-year US Treasury notes, on the other hand, gained 2.6% to 1.365%.

Precious metals reversed course as gold fell 0.9% to $1,752 per ounce and silver lost 0.2% $22.64.

Oil prices rose around 0.4% with Brent crude trading at $76.46 per barrel and US benchmark West Texas Intermediate crude at $72.55.

SOURCE: ANADOLU AGENCY

Turkey's president said Monday that he expects economic relations between his country and the US to grow to reach their "real full potential.”

Speaking in New York City at an event organized by the Turkey-US Business Council, Recep Tayyip Erdogan reminded businesspeople from across the US of the 70-year alliance between the two countries.

"This very special and steadfast cooperation of ours has contributed to peace, stability and security in a great many parts of the world for years," he said. "The critical developments that have taken place recently have once again shown the significance and value of the strategic partnership between our countries."

He pointed out cooperation opportunities between Turkey and the US, including security, defense and investments and stated his belief that differences in opinions which occur from time to time between countries can be overcome through dialogue, solidarity and mutual respect.

Noting that US President Joe Biden fully shares the understanding that developing economic relations between the two countries is "both possible and necessary," Erdogan reiterated both leaders' determination to expand the bilateral trade volume to $100 billion, which is "a realistic target and is easily achievable as long as the right steps are taken."

Erdogan noted that the bilateral trade volume between the US and Turkey rose to $21 billion over the last year despite pandemic conditions and recalled that Turkey ranks third among the countries which the US exports to the most.

Stating his hope for the trade volume to reach $25 billion by the end of 2021, he went on to say that mutual investments play a significant role in the development of economic and trade relations.

The number of US-based companies conducting business in Turkey had reached 1,971 by June 2021 and the US's direct investments in Turkey reached $13 billion, Erdogan remarked.

He added that Turkish investors, on the other hand, made direct investments worth $7.2 billion in the US, standing further out in global trade with cost-effective and vast production opportunities, a well-educated workforce and modern logistic infrastructure.

Erdogan cited that Turkey ranked second among the G20 countries with its 1.8% growth rate in the last year and became one of the countries that expanded its industrial production within the G20 during the same period.

One of the means to strengthen economic and trade cooperation is through diversification of the fields of cooperation, he said.

"The field of energy holds serious opportunities for both countries...I believe our cooperation in this field will advance more in the coming period."

Commenting that businesspeople are the envoys of friendship and partnership between two counties, Erdogan said Turkey and the US should boost dialogue and cooperation to reach the "real full potential" of the economic and trade partnership.

Source: Anadolu Agency

Turkey will take new steps to help the country's exporters, including removing the requirement for security deposits, restructuring Turkish Eximbank, and establishing a new fair center, President Recep Tayyip Erdogan announced on Saturday.

"As our businesspeople produce, export and provide employment, we will all be able to look to the future with confidence," Erdogan said at the Turkish Exporters Assembly's (TIM) Export Champions program in the commercial capital Istanbul.

At the event, automaker Ford was named Turkey’s largest exporter, followed by two other carmakers, Toyota Engine Manufacturing Turkey and Oyak Renault.

Erdogan said an export development fund will be created with contributions from exporters to help remove the need for exporters to make security deposits.

He also said that the country's Eximbank will be restructured and strengthened.

Erdogan added that a new fair center will be established soon.

He stressed that exports not only mean earning money, and that trade is also not only selling and buying goods, as exporters are Turkey's representatives in cultural and social relations.

Turkey reached the critical level of taking a 1% slice of the world export pie, he underlined.

The rising share of high-tech exports in the nation’s exports, the growing number of exporters with over $1 billion in annual exports, and more and more jobs in exporting companies all show that Turkey is on the right path, he said.

Last year, despite the pandemic, Turkey showed a good performance, and the country is in a better position this year by reaching historical high figures monthly, quarterly, semi-annually and annually, he said.

He told how in August, the country's exports rose 52% year-on-year to hit the highest August figures in the republic's history.

"I hope the country will also reach the $20 billion export level in September," he added.

Source: Anadolu Agency