Global markets are fluctuating ahead of the two-day meeting of the Federal Reserve of the United States. The Federal Reserve is expected to raise interest rates for the first time in three years. Analysts predict a 25 basis point increase in interest rates due to the strong U.S. labor market and rising inflation expectations.
Increase in Treasury Yields and Its Effects
On Tuesday, the yield on the 10-year U.S. Treasury reached its highest level since July 2007, at 5.04%, and stabilized at 5% on Wednesday. This increase followed comments from Scott Basset, the U.S. Treasury Secretary, stating that the country's bond market is performing the best globally.
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Impacts on Stock and Commodity Markets
However, the U.S. Senate failed to secure the necessary majority to advance the "Transparency Act." This bill, which aimed to create a regulatory framework for the cryptocurrency sector in the U.S., was blocked. In this context, the price of Bitcoin fell by 0.1% to $75,780, and shares of cryptocurrency exchange Coinbase dropped by 10%.
In the oil market, Brent crude oil prices fell by 0.6% to $108.1 per barrel. Meanwhile, gold prices also decreased by 0.6% to $4,321 per ounce. The U.S. dollar fell by 0.1% due to financial concerns, reaching 99.6.
In U.S. stock markets, the Dow Jones index fell by 0.63%, the S&P 500 by 0.45%, and the Nasdaq by 0.78%. However, these indices started positively on Wednesday.
In Europe, stock markets experienced a negative trend on Tuesday due to rising oil prices and selling pressure in bond markets. In Germany, the ZEW Economic Sentiment Index rose from 34.2 in August to 34.7 in September, but still remains below the forecasted level of 40. Deutsche Bank shares also faced a 2.4% decline.
In Asia, stock markets benefited from increased risk appetite and continued positively on Tuesday. Japan's exports rose by 19.3% and imports by 28% in August. Japan's trade deficit reached 1.1 trillion yen for the fourth consecutive month.
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