Will U.S. business statistics normalize the agenda?Markets last week again the subject of trade wars stamp was. On the last day of the week, U.S. President Donald Trump's announcement that the European Union would bring customs duties to EU-derived cars increased tension. During the week, statements from many countries have been followed, while the chaotic environment in the markets has also caused a change in pricing behavior. In some assets, mainly stock indexes, sales pressure was slow, while in some products, complex pricing was seen outside the usual correlations. On the other hand, we followed the statements of the officials of major central banks last week. Jonathan Haskel, who will begin his post at the UK Central Bank(boe) Monetary Policy Committee(MPC) in September, said it would be a matter of changing the Bank's inflation target and that the uncertainty Brexit will emerge on the UK economy should be monitored by the BoE. Mark Carney, Head of the Bank(Boe), said: "the increased vulnerability to protectionism could destabilize some of the current power of the global economy, and it also brought a different perspective, saying they should be ready for the possibility of reversing interest rates on the world." European Central Bank(ECB)’s New Vice President Luis de Guinos: inflation will continue to converge with bank targets, while Atlanta FED Chairman and FOMC member Raphael Bostic said in a statement: trade tensions will increase risks on the U.S. economy, he said. While other fed members made similar statements, they pointed out that this would have a negative impact on the Fed's tightening steps. Last week's Flash of the euro zone was the resolution of the migration crisis against Friday morning at the EU leaders summit, which began on Thursday. As it is known, the “immigration issue” has been causing a crisis over the euro-zone countries and the German coalition. Due to disagreements, France, Spain and Italy also showed frictions between the coalition partners formed the new government and head of Germany came to the brink of separation. Donald Tusk's good news against the morning has caused a rapid recovery in the euro. The important economic data of last week are the first from the USA, Canada and the UK.quarter GDP exchange rates were again us Durable Goods Orders and PCE data and Eurozone CPI. US growth, which is critical to fed/FOMC decisions, was revised downwards as it was last month, while UK growth followed BOE's expectations partially broke the selling pressure on pound assets. While the balance of foreign trade was announced as important economic data on the domestic side, foreign trade deficit, which increased by 5.7 percent compared to the same period of the previous year, was given. For the pricing of TL rates, news feeds were followed. “The abolition of political uncertainty will be positive for Turkey's credit ratings,” Jcr Eurasia rating said, and the implementation of loose fiscal policies, unlike the OTP(medium-term program) on inflation and current account deficit, was criticized. According to Moody's, the International Credit Rating Agency: Turkey's Credit Rating review continues and the country's credit profile will be given direction to Macro policies. In the middle of the week, a clear statement was made after the meeting of the general presidents of the Parties (Erdogan and Bahçeli) who won the election in the Republican Alliance. This week we will be following major global news feeds, including trade wars. In addition, important economic data from the U.S.; Factory orders, ISM manufacturing and Services PMI, Non-Farm Payrolls, average hourly earnings and unemployment rate, euro zone manufacturing and Services PMI from China and other economies in Australia, the RBA interest rate decision, API and EIA Oil data for investors is to be monitored. At the beginning of the questions in mind, there is the following: “will the U.S. business statistics, which will be announced on Friday, be able to distribute and normalize the misty weather on the agenda?” The answer to this question is a curiosity for all investors. For some time trade wars, political conflicts, etc.; while neutralizing economic data and central banks, it also brought uncertainty prices.
