The entire world economy is focused on the data that will be released.

As the fight against inflation worldwide approaches its end, concerns remain about whether the prolonged period of high interest rates will result in a recession. Analysts noted that optimistic signals from the employment report released last week have fueled risk appetite, adding that today's inflation data could increase volatility in the markets.

DEMAND FOR 50 BASIS POINTS CUT IN INTEREST RATES

According to the data released yesterday, the average interest rate for a 30-year mortgage in the U.S. rose to 6.36% last week, the highest level since August, while mortgage applications decreased. Wholesale inventory levels in the country for August recorded a monthly increase of 0.1%, below expectations. Additionally, the minutes from the Federal Open Market Committee (FOMC) meeting held on September 17-18, released by the Federal Reserve (Fed) yesterday, indicated that "a significant majority" of bank officials supported a 50 basis point cut in the policy rate.

EXPECTATIONS OF RISING INFLATION HAVE ENDED

The minutes revealed that some officials, while noting that economic growth remains strong and unemployment continues to be low, expressed a preference for a 25 basis point cut in the policy rate during the meeting, as inflation is still somewhat high. The Fed's minutes stated, "Almost all officials indicated that the upside risks to the inflation outlook have diminished, while downside risks to employment have increased." Meanwhile, statements from Fed officials are being closely monitored, with Dallas Fed President Lorie Logan stating yesterday that she supported the 50 basis point rate cut made by the bank last month, but noted that there are still upside risks to inflation and that, considering the "significant" uncertainties regarding the economic outlook, it may be appropriate to return to a normal policy stance more gradually.

DECLINE IN SHARES OF LARGE COMPANIES

On the corporate side, Alphabet's shares fell by 1.59% following news that the U.S. is preparing to "force" the search engine Google, which it accuses of monopolization, to sell some of its applications and services. Boeing's shares also dropped by 3.41% after the company withdrew its 30% wage increase offer for factory workers who have been on strike since mid-September. Following the data released last week, expectations for interest rate cuts in the markets have diminished, while the Fed is expected to implement a total of 50 basis points cut in its two meetings by the end of the year, with 25 basis points each.

HURRICANE MILTON ALSO ALARMING INVESTORS

In addition, the news flow regarding tensions in the Middle East and Hurricane Milton, which is affecting the state of Florida in the U.S., is being closely monitored by investors. With these developments, the U.S. 10-year Treasury yield is currently at 4.07%, while the dollar index started the day at 102.9. The price of gold per ounce finished yesterday down 0.6%, while it is currently trading at $2,613, which is 0.2% above the previous close. The price of Brent crude oil closed yesterday at $76.5, down 1.1%, while it is currently at $77, up 0.6%. On the New York Stock Exchange, the Dow Jones index rose by 1.03%, the S&P 500 index by 0.71%, and the Nasdaq index by 0.60% yesterday. The Dow Jones and S&P 500 indices set new records at the close. U.S. index futures also started the day on a positive note.

GERMANY'S WIND BLOWS IN EUROPE

While a buying trend dominated European stock markets yesterday, confidence remains strong regarding the easing of inflationary pressures across the region. The European Central Bank (ECB) is expected to implement another 25 basis point rate cut at the monetary policy meeting scheduled for October 17, while macroeconomic data from the region is being closely monitored by investors. According to the data released yesterday, Germany, the largest economy in the Eurozone, recorded a trade surplus of 22.5 billion euros in August, exceeding expectations. With these developments, Germany's DAX 40 index rose by 0.99%, France's CAC 40 index by 0.52%, the UK's FTSE 100 index by 0.65%, and Italy's FTSE MIB index by 0.59%. European index futures also started the day positively.

ASIA'S INDICATORS TURN GREEN

In Asia, a positive trend is observed in the new trading day, as China's steps to increase liquidity in its stock markets are boosting risk appetite. Following news that China will take steps to promote the healthy development of its capital markets, a buying trend is prominent in China and Hong Kong. According to the data released today, Japan's Producer Price Index (PPI) for September increased by 2.8% year-on-year, exceeding expectations. Meanwhile, Japan's new Prime Minister Shigeru Ishiba dissolved the House of Representatives yesterday ahead of the early elections scheduled for October 27. Prime Minister Ishiba, who took office last week with his new cabinet, is preparing for his first political test in the early general elections. The dollar/yen exchange rate is currently at 149.4, slightly above the previous close by 0.1%. Near the close, Japan's Nikkei 225 index rose by 0.2%, South Korea's Kospi index by 0.6%, China's Shanghai Composite index by 3%, and Hong Kong's Hang Seng index by 4.1%.

PARTIAL INCREASE IN ISTANBUL STOCK EXCHANGE

In the domestic market, the BIST 100 index of the Istanbul Stock Exchange, which followed a buying trend yesterday, closed the day at 9,132.30 points, gaining 0.97% compared to the previous close. The dollar/TL closed yesterday down 0.1% at 34.2344, while it is currently trading at 34.2540, slightly above the previous close in the interbank market. Analysts stated that today, the unemployment rate, industrial production, and weekly money and banking statistics will be monitored domestically, while in the U.S., the Consumer Price Index (CPI), weekly unemployment claims, and federal budget balance will be followed, noting that technically, the resistance levels for the BIST 100 index are at 9,200 and 9,300, while the support levels are at 8,850 and 8,700 points.

The data to be monitored in the markets today is as follows:

10:00 Turkey, August unemployment rate

10:00 Turkey, August industrial production

14:30 Turkey, weekly money and banking statistics

15:30 U.S., September Consumer Price Index (CPI)

15:30 U.S., weekly unemployment claims

21:00 U.S., September federal budget balance