The BIST added 0.6% today, however, as the Turkish lira lost 0.12% against the dollar. Because of the volatility and the high inflation of the Turkish lira, the nominal increases can be deceiving about the actual performance of the index. Still, the BIST performed quite well in these last couple of months, breaking record after record, and also receiving some foreign investment over the last weeks. One reason for this substantial increase in the index is the negative real interest rates, the interest rates are around 14% while inflation is approximately at 80%, therefore investors shift their funds to risky assets to preserve their value. Also, the banks have profited more due to the widening of economic policy, and they've been leading this rally. The market in Turkey will be closed tomorrow due to a national holiday.
The US Stocks, on the other hand, are down due to fears of rate increases and the possibility of a recession. The S&P lost 0.67% today, the Dow lost 0.6%, and the Nasdaq fell by 1%. The market is still affected by the Jackson Hole address, and most investors are anticipating further rate increases, contrary to their beliefs before Jackson Hole which led to this summer's rally. The bond yields increased further today. Also, commodity prices rose today, the benchmark Brent crude shooting up 3.91% to 104.94 dollars a barrel, resulting in gains for the energy sector.
Sources: Bloomberg HT for Turkish markets data, Yahoo Finance for global markets
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