Global markets: Global markets opened with mixed trends as investors closely monitor the Federal Reserve's impending rate decision, anticipated to be announced at its two-day meeting beginning on Wednesday. The central bank is expected to raise interest rates by 25 basis points, a move not seen in the past three years.
According to Anadolu Agency, the potential rate hike is driven by robust US employment figures, rising inflation expectations, and Federal Reserve Chair Kevin Warsh's emphasis on price stability. Although Warsh did not provide forward guidance, his upcoming statements are expected to be closely scrutinized by market participants.
On Tuesday, the US 10-Year Treasury yield peaked at 5.04%, marking its highest level since July 2007, before stabilizing at 5% on Wednesday. This stabilization followed Treasury Secretary Scott Bessent's remarks praising the US bond market's performance. Amid these developments, the US Senate was unable to advance the Clarity Act bill, aimed at establishing a regulatory framework for the cryptocurrency sector.
In the cryptocurrency market, Bitcoin experienced a slight decrease of 0.1%, trading at $75,780, while shares of the crypto exchange Coinbase fell by 10%. In the commodities market, November-delivery Brent crude oil saw a 0.6% decline to $108.1 per barrel, despite ongoing geopolitical concerns and rising US inventories. Gold prices also dipped by 0.6%, trading at $4,321 per ounce.
The US dollar fell by 0.1% to 99.6, as fiscal concerns outweighed expectations of a rate hike. On Tuesday, the New York Stock Exchange faced a downturn, with rising bond yields affecting investor risk appetite. However, tech giant Meta's stock rose nearly 1% after announcing the testing of next-generation chips to improve AI model efficiency.
The New York Fed's manufacturing index reported a decrease in September, falling to 7.6, below market expectations. Diesel prices hit a new high of $6.27 per gallon, according to the American Automobile Association (AAA). Major US stock indexes closed lower on Tuesday, with the Dow Jones Industrial Average down 0.63%, the S and P 500 falling 0.45%, and the Nasdaq dropping 0.78%. Nevertheless, American indexes showed a positive trend at Wednesday's opening.
In Europe, stock markets were negatively impacted on Tuesday by rising oil prices and pressure in bond markets. Germany's ZEW Economic Sentiment Index saw a slight increase, although it remained below expectations. Deutsche Bank's shares fell by 2.4%, while major European indexes such as the UK's FTSE 100, France's CAC 40, Italy's FTSE MIB 30, and Germany's DAX 40 all experienced declines. As of Wednesday, European markets displayed a mixed trend.
Asian markets, on the other hand, benefited from a slightly eased selling pressure in the bond market. Japan's exports and imports surpassed estimates in August, although the country faced a growing trade deficit due to rising energy costs. Near Wednesday's close, South Korea's Kospi, Hong Kong's Hang Seng, China's Shanghai Composite, and Japan's Nikkei 225 all recorded gains.