The BIST100 index rose 2,5% today, to a new record of 3,160. The index was led by banking which gained over 7% today. The widening economic policy of Turkey increased banks' profits, as more people are willing to borrow Turkish liras with negative (approximately -60,-70%) interest rates, and the banks are borrowing from the Central bank at only 13%. The BIST saw record after record in the last few months, mostly because of inflation. Even though the nominal gains seem high, returns are not that high in USD.
The Nasdaq composite index led the market by adding 1.6% in the lowest volume session since New Year's Eve 2021. This low volume is due to the uncertainty before the Jackson Hole address. The S&P gained 1% and Dow industrials ended 0.3% higher. New jobless claims data showed claims fell to 243,000 from 245,00 this week, and the shrinkage of the US economy was 0.6%, less than the forecasted 0.9%. Most money managers say that they're preparing for even more volatility in the coming months.
Hong Kong's Hang Send index rose after the US and China neared an agreement on US officials auditing Chinese companies listed on NY exchanges, after Chinese companies' risk of getting de-listed decreased.
Stoxx 600 rose 0.46%.
Source: The Wall Street Journal
Comments