11.02.2025 11:02
As U.S. President Donald Trump's tariff announcements continue to complicate pricing in global markets, all eyes are on Federal Reserve Chairman Jerome Powell's upcoming speech at the U.S. Senate's Committee on Banking, Housing, and Urban Affairs.
As global markets continue to grapple with the pricing challenges posed by U.S. President Donald Trump's tariff announcements, all eyes are on Federal Reserve (Fed) Chairman Jerome Powell's upcoming speech before the U.S. Senate Committee on Banking, Housing, and Urban Affairs today.
TRADE WARS IN FULL SWING!
Following Trump's announcement of a 25% tariff on steel and aluminum imports, tariff concerns have once again gained momentum in the markets. Analysts noted that Trump is expected to announce reciprocal tariffs on all countries this week, suggesting that trade tensions could influence market direction. Meanwhile, Powell's statements today are anticipated to provide insights into the state of the U.S. economy and the potential impacts of tariffs. Analysts indicated that pricing in the money markets remains strong regarding the Fed's first interest rate cut expected in June.
TRUMP'S WORDS BENEFITED METAL COMPANIES
According to the results of the Consumer Expectations Survey released yesterday by the Fed's New York Branch, consumers' short-term inflation expectations remained unchanged at 3% last month. On the corporate side, shares of steel producer US Steel rose nearly 5%, Cleveland-Cliffs' shares increased by 18%, and Nucor's shares gained 5%. Aluminum producer Alcoa's shares also appreciated by 2%. With these developments, the yield on U.S. 10-year Treasury bonds rose to 4.50%, while the dollar index stabilized at 108.4, up 0.1%. The price of gold per ounce closed yesterday with a gain of 1.6% at $2,906.93. After reaching a record high of $2,942.74, gold is currently trading at $2,919, up 0.4%.
POWELL'S STATEMENT AT 18:00
Analysts mentioned that they will be following Fed Chairman Powell's speech at 18:00 and Bank of England (BoE) Governor Bailey's remarks, noting that technically, the BIST 100 index has support at 9,800 and 9,750 points, with resistance at 10,000 and 10,100 levels.