Belgin Yakisan Mutlu
05 November 2021•Update: 05 November 2021
ISTANBUL
After global markets followed a mixed course yesterday following the US Federal Reserve's first step towards normalization in monetary policies, US employment data for October will be in the spotlight on Friday.
The Fed on Wednesday kept its benchmark interest rate unchanged and said tapering, the process of reducing its monthly asset purchases, will start later this month, in line with market expectations.
Fed Chair Jerome Powell was dovish about the possibility of a rate hike after the conclusion of the central bank's two-day meeting Wednesday.
"We don't think it's a good time to raise interest rates because we want to see the labor market heal further,” he said.
Among the data that the bank is taking into account the most in determining its monetary policy are non-farm employment, the unemployment rate, and average hourly earnings along with inflation.
In this context, the October employment report due on Friday is expected to be decisive in the markets’ direction
The possibility of prominent companies – besides Chinese real estate giant Evergrande – going into default continue to put pressure On Asian equity markets.
On Friday, the Hong Kong stock exchange halted trading in shares of another Chinese real estate developer, Kaisa Group Holdings, and its subsidiaries as the company missed a payment due to liquidity strains.
Analysts said that although falling uncertainty over global monetary policies supports the stock markets, the rising tendency towards bonds may be a pressure factor.
