ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

Tradingview Weekly Market Wrap 25 October 2021

Share On Facebook
share on Linkedin
Print

One of the biggest surprises last week was the decision by the Central Bank of Turkey to lower the key interest rate by 200 basis points from 18% to 16%. As it couldn’t be any other way, the second in a row rate cut disappointed investor expectations and immediately caused the Turkish lira to fall to new all-time lows. On top of that, Turkish President Recep Tayyip Erdogan ordered his Ministry of Foreign Affairs to declare ten Western ambassadors – from France, Canada, Finland, the Netherlands, Denmark, Germany, New Zealand, Norway, Sweden, and the United States –  ‘persona non grata’ for having supported the Turkish philanthropist, activist, and opponent Osman Kavala. Amid mounting geopolitical tensions, the Turkish lira is likely to continue its decline.

© Pixabay

Another surprise came from the side of the Central Bank of Russia, which decided to raise the interest rate by 75 basis points, to 7.5%, in the face of rising inflation. The bank assured that its monetary policy aims to limit this risk, as well as reduce inflation to 4%. The bank expects inflation to decline to 4-4.5% in 2022 and to stay around 4% thereafter. The only problem is that tight monetary policy negatively affects the country’s economic growth. To be more precise, as a result of the increased cost of money, families will be able to consume less and companies will see their investment capacity reduced because they have to pay higher interest to finance themselves. The production of an economy is reduced and, with it, employment. As a result, we do not rule out that within a couple of months the country’s economy could face stagflation when the acceleration of inflation coexists with high unemployment rates. In fact, the worsening of the epidemiological situation or the extension of the restrictive measures, announced last week, will only add more fuel to the fire.

Likewise, we must not forget about geopolitical tensions. Last week the Sinclair Broadcast Group, one of the largest broadcasters and media companies in the United States, was the target of a cyberattack that disrupted several television stations over the weekend. In the United States, authorities came to the conclusion that the malware used in the attack was created by a Russian criminal group, Evil Corp. In the event that the link between the pirates and the Russian government will be really proven, new sanctions could take place.

Finally, talking about coronavirus, the British Government confirmed last week that it “closely follows” the appearance of the new Delta variant. According to the preliminary data, it could be between 10 and 15% more transmissible than this, which is already twice as contagious as the original SARS-CoV-2. Cases of AY.4.2 have also been found in other countries such as Russia, Israel, Portugal and the United States, and it is unclear if it may be in Spain. Hopefully, the world will be able to escape another lockdown.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com