Since Jerome Powell stated the Fed would tighten the economy further to combat inflation, even at the cost of driving the US economy into a recession. This address caused stocks to plummet, and S&P lost nearly 6% since Friday. This speech proved hopes that the Fed would ease economic policy after inflation data for June and July were better than anticipated. It seems that the Fed will keep on with the rate increases, the easing that markets hope for doesn't seem close right now.
BIST was closed Tuesday due to a national holiday, it was slightly down Wednesday and it's nearly even now, mid-session. This was a good month for the index, it has gained 19,3% with the help of the unorthodox policy loosening of the Central Bank. Even though foreign investment in the index was up over these last weeks, there are still concerns about a potential debt crisis. The banking sector has led the index to its new highs, gaining 48%, benefiting from the rate slashes.
Sources: Bloomberg, Reuters
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