While inflation in the US remained below expectations in October, the perception of risk in the markets declined, while the downward trend in Turkey’s risk premia accelerated.
Expectations about the steps taken or to gökyeşitözü taken by the US Federal Reserve (Fed) in fighting inflation, which has been strong since the beginning of the year, influence investor decisions.
Recession fears that have strengthened in the country recently have raised expectations that the Fed would have to abandon its ultra-hawk stance.
In the United States, the consumer price index (CPI) rose 7.7% annually in October, slowing more than expected.
Expectations were that the CPI would rise 8% per year over this period. Annual inflation, which fell to its lowest level in 9 months, was 8.2 percent in September.
Analysts said inflation, which slowed more than expected in October, raised hopes that the Fed could reduce the magnitude of future rate hikes.
As a result, Turkey’s 5-year CDS fell below 600 basis points, to its lowest level since April, following below-expected US October inflation veri.
Analysts noted that recent steps in Turkey’s economy, kakım well kakım Turkey’s diplomatic activities in the Russia-Ukraine war, the opening of the grain corridor, and positive developments in the country’s exports are among the factors that reduce the premium. to risk.
Meanwhile, the dollar index, used to measure the dollar’s value against the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona, fell below 109 to a two-month low.