Daily Analysis 27/12/2022

While the messages of the European Central Bank officials regarding the tight stance were followed on the first trading day of the week in Europe, important data flow was not followed due to Christmas. According to Isabel Schnabel, Member of the Board of the European Central Bank, interest rates should be raised to restrictive zones to bring inflation down to target levels. Last week, European Central Bank Vice President Luis de Guindos gave messages that a tight stance in monetary policy could continue for a while. While there is no important data flow to be announced on the European front today, wholesale stocks and housing price indices will be followed in the USA.

We left behind a quiet day in terms of data flow due to the Christmas holiday on the first trading day of the week. As significant of today, there is no data flow in the UK, while secondary data such as wholesale stocks, housing price index and Dallas Fed manufacturing activity index will be followed in the USA. We can say that there are slight upward trends in the pair this morning. A slight downward trend is observed in the dollar index.

In global markets, the US and European markets were closed yesterday due to the Christmas holiday. So it was a quiet day. US futures are trading with light buyers today. It is priced in the markets that China has opened its borders by removing the latest covid measures. The developments in China not only support the risk appetite in the markets, but also weaken the demand for safe havens. Secondly, the cooling of the weather and the increase of storms due to the effect of winter in the USA are closely watched. There are secondary level data to be released in the US today, but its impact can be expected to be limited. Due to the last week of the year, a new movement in the markets may not be expected.

The S&P 500 index closed Friday at 3,844, up 0.59%. US stocks finished the week higher. During the week, the fact that the data released from the USA satisfies the markets supported the continuation of the Fed's interest rate hike. For this reason, some days in the US stock markets led to downward movements. Yesterday, the US stock markets were closed for the Christmas holiday. U.S. futures are lightly bought this morning. China's opening of its borders and lifting the latest covid restrictions supports the risk appetite in the markets this morning. Secondary level data will be released in the USA during the day, but its impact can be expected to be limited.