Markets

Low appetite in global markets

Global markets entered the new trading day with low appetite.

Significant decreases were observed in Asian stock markets. The sales coming to the shares of technology in the losses in Asia, the emergence of the state of emergency in Japan’s capital city Tokyo, and the expectations that the economic recovery in China may have peaked were influential.

US indices, which hit a record on Wednesday, saw a slight decline in first futures.

China’s State Board announced that the central bank could provide more liquidity to banks to enable them to lend more. In the statement, it was stated that monetary policy tools will be used, including lowering the reserve requirement ratios.

Following the Fed minutes announced in the US, Wall Street indices closed Wednesday at record levels. The US 10-year bond yield, which fell close to 8 basis points the previous day, continued its losses yesterday and closed at 1.3163 percent by retreating 3 basis points.

Bloomberg Dollar Index, which rose on Wednesday, protected its interests in the morning hours.

Fed progress forecast in minutes

According to the minutes of the Fed’s most recent Federal Open Market Committee meeting, officials at the bank expect progress to continue, even though they believe that the “significant additional recovery” has now not met the goals that were a prerequisite for tapering.

According to the minutes of the meeting held on 15-16 June, some officials predicted that the necessary conditions for the reduction of asset purchases would be met a little earlier than they had predicted in the previous meetings.

In the minutes, it was stated that the participants were of the opinion that “as a part of prudential planning” in general, the necessary conditions should be established and the truth should be positioned to reduce asset purchases if deemed appropriate.

In the minutes, which also show that Fed members have many question marks about when the labor shortage and supply difficulties, which suppress inflation in the upper direction, will disappear, it was stated that “a valuable majority of the participants decided that the risks to inflation claims are high.”

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