Finance Brief: The morning after the crash, what held overnight
Finance Brief: The morning after the crash, what held overnight
The wild market swings after the American election did not reverse overnight. For Turkish savers and investors, the question this morning is whether the calmer open is a pause or the start of a new direction.
Istanbul gave the clearest answer on Wednesday. The BIST 100 closed at 11,478.13, up 4.12 percent on the day, after opening at 11,157.86 and touching 11,588.86 intraday, with trading volume of 184.3 billion lira, according to Anadolu Agency. Banking and transport shares led the gains.
The lira is the number to watch next. The dollar trades around 50.04 lira this morning, holding just above the 50 level it crossed on November 4, when the central bank's indicative rates put the dollar at 49.9360 buying and 50.0260 selling. A level that was a line in the sand is now the floor markets are testing.
Gold is holding its jump. Spot gold trades near 4,077 dollars an ounce at the time of writing, above the 4,000 mark it reclaimed on Wednesday when it closed near 4,059 to 4,066 dollars, up more than 3 percent, while December futures settled at 4,072.30 dollars. Brent crude sits near 94 dollars after Wednesday's drop of nearly 9 percent to 94.47 dollars, as traders priced in hopes of renewed diplomacy over Iran. The dollar index sits near 101.5, a one-month low, and European shares joined the rally, with the Stoxx 600 up 1.91 percent to 658.02 and the DAX up 2.38 percent to 26,479.33.
What to watch: gold holding above 4,000 dollars is the line between a real shift and a one-day spike, and Brent reclaiming 100 dollars would signal the war premium returning. Today's American jobless claims and productivity figures, followed by Friday's October jobs report, are the next tests of the story. If gold slips back below 4,000 or Brent jumps back above 100, the midterm rally thesis weakens fast.
Information only, not financial advice.
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