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Dr. Nilgün Birgören Premium Member Group moderator
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Chinese stimulus plan rallies Turkish and world markets
Turkish and world markets rose on news of a massive $586 billion Chinese stimulus plan. The İstanbul Stock Exchange (İMKB), following the lead of the Asian markets, closed the first session up almost 2.5 percent but then moved down to close the day at 27,666.53, 0.56 percent higher than yesterday's close.
Fatih Baykan, a strategist from Yatırım Finans, said: "There was a moderate increase based on the positive atmosphere in the global markets. The package announced by China and the expectation that the Fed will make another interest rate reduction because of the poorer than expected employment data caused an optimistic environment abroad." The lira also strengthened and weakened in tandem with the market and closed the day at YTL 1.532 to the dollar. The positive sentiments in the market also contributed to the lira's early morning strength against the dollar, which was trading at YTL 1.521. Benchmark Turkish T-bills remained somewhat steady at 22.62 percent.

Wall Street rose in morning trading Monday, boosted by China's $586 billion stimulus package, a move that investors believe will help ease the global economic downturn.

The advance follows a rally in Asia and Europe after China announced plans to boost its economy through a mix of spending, subsidies, looser credit policies and tax cuts. The package was seen as a benefit to multinational companies such as General Electric Co. and Caterpillar Inc.

Also boosting US markets, the government on Monday provided new financial assistance to the troubled insurance giant American International Group Inc., including pouring $40 billion into the company in return for partial ownership. The action was announced jointly by the Federal Reserve and the Treasury Department.

All told, the moves, on top of the bailout of AIG announced in September, boost aid to the company to around $150 billion. The insurer, whose shares surged 26 percent to $2.65, also announced a $24.47 billion loss for the third quarter.

The Dow Jones Industrial Average rose 141.38, or 1.58 percent, to 9,085.19.

Broader indexes also surged. The Standard & Poor's 500 index jumped 12.78, or 1.37 percent, to 943.77; and the NASDAQ composite index rose 15.61, or 0.95 percent, to 1,663.01.

With no major economic data due during the session, Wall Street turns to corporate news for direction. Investors later this week will pore over a stream of reports, including retail sales, the labor market and consumer sentiment.

Government-controlled mortgage finance company Fannie Mae said Monday it lost $29 billion in the third quarter as it took a massive tax-related charge and saw mortgage defaults continue to rise.

The company, seized by federal regulators more than two months ago, warned that it if it has another dismal quarter, it may need some of the $100 billion in federal support that the government promised when it seized Fannie Mae and sibling company Freddie Mac in September.

With stocks higher, investors moved out of the relative safety of government bonds. The three-month US Treasury bill's yield rose to 0.32 percent from 0.28 percent late Friday. A higher yield indicates less demand.

Oil prices jumped above $63 a barrel Monday in Asia as regional stock markets rallied on China's economic stimulus plan, which could underpin demand for crude. A barrel of light sweet crude rose $3.10 to $64.14 on the New York Mercantile Exchange.

Nilgun Birgoren
- 11 Nov 2008, 10:17 pm
Dr. Nilgün Birgören wrote: > Turkish and world markets rose on news of a massive $586 billion > Chinese stimulus plan. The İstanbul Stock Exchange (İMKB), following > the lead of the Asian markets, closed the first session up almost 2.5 > percent but then moved down to close the day at 27,666.53, 0.56 > percent higher than yesterday's close. > Fatih Baykan, a strategist from Yatırım Finans, said: "There was a > moderate increase based on the positive atmosphere in the global > markets. The package announced by China and the expectation that the > Fed will make another interest rate reduction because of the poorer > than expected employment data caused an optimistic environment > abroad." The lira also strengthened and weakened in tandem with the > market and closed the day at YTL 1.532 to the dollar. The positive > sentiments in the market also contributed to the lira's early morning > strength against the dollar, which was trading at YTL 1.521. > Benchmark Turkish T-bills remained somewhat steady at 22.62 percent. > > Wall Street rose in morning trading Monday, boosted by China's $586 > billion stimulus package, a move that investors believe will help > ease the global economic downturn. > > The advance follows a rally in Asia and Europe after China announced > plans to boost its economy through a mix of spending, subsidies, > looser credit policies and tax cuts. The package was seen as a > benefit to multinational companies such as General Electric Co. and > Caterpillar Inc. > > Also boosting US markets, the government on Monday provided new > financial assistance to the troubled insurance giant American > International Group Inc., including pouring $40 billion into the > company in return for partial ownership. The action was announced > jointly by the Federal Reserve and the Treasury Department. > > All told, the moves, on top of the bailout of AIG announced in > September, boost aid to the company to around $150 billion. The > insurer, whose shares surged 26 percent to $2.65, also announced a > $24.47 billion loss for the third quarter. > > The Dow Jones Industrial Average rose 141.38, or 1.58 percent, to > 9,085.19. > > Broader indexes also surged. The Standard & Poor's 500 index jumped > 12.78, or 1.37 percent, to 943.77; and the NASDAQ composite index > rose 15.61, or 0.95 percent, to 1,663.01. > > With no major economic data due during the session, Wall Street turns > to corporate news for direction. Investors later this week will pore > over a stream of reports, including retail sales, the labor market > and consumer sentiment. > > Government-controlled mortgage finance company Fannie Mae said Monday > it lost $29 billion in the third quarter as it took a massive > tax-related charge and saw mortgage defaults continue to rise. > > The company, seized by federal regulators more than two months ago, > warned that it if it has another dismal quarter, it may need some of > the $100 billion in federal support that the government promised when > it seized Fannie Mae and sibling company Freddie Mac in September. > > With stocks higher, investors moved out of the relative safety of > government bonds. The three-month US Treasury bill's yield rose to > 0.32 percent from 0.28 percent late Friday. A higher yield indicates > less demand. > > Oil prices jumped above $63 a barrel Monday in Asia as regional stock > markets rallied on China's economic stimulus plan, which could > underpin demand for crude. A barrel of light sweet crude rose $3.10 > to $64.14 on the New York Mercantile Exchange. > > Nilgun Birgoren

Turkish Business Club

Chinese stimulus plan rallies Turkish and world markets