Global markets focus on US inflation data

ISTANBUL

Amid renewed concerns about the omicron variant of COVID-19, global markets on Friday focused on key US inflation data that could set direction on Federal Reserve rates.

Analysts said Friday's data may affect the Fed's asset purchase rate and interest rate hikes. They also warned investors that volatility in asset prices may increase.

The US consumer price index is expected to increase by 0.7% month-on-month and 6.8% year-on-year in November.

Major indices on the US stock market closed lower on Thursday despite jobless claims falling again to their lowest level since 1969.

The Dow saw little change, falling 0.06 points to 35,754.

In Europe, inflation in Germany will be especially followed through the day.

Asia

Chinese real estate giants Evergrande and Kaisa went into default after failing to pay their debts, while China's Central Bank Chairman Yi Gang stated that the situation should be evaluated as a market reality.

As yuan continues to gain against the dollar, the Central Bank of China increased the FX reserve requirement ratio by 200 basis points to 9% yesterday.

In Japan, the Producer Price Index (PPI) exceeded expectations with an annual increase of 9% in November -- reaching its highest in 40 years.