FRENCH ELECTIONS

                                       

Today France has an presidency  election.First session does.Positive affect or negative affect for stock markets;we will see in monday.

If Miss Le Pen wins ; a lots of analysis say Euro decreases against Dolar.However many Europen Stock Markets can decrease or  If any of the other candidates win.Stocks will get more strong.They are just hypothesis 

French 10 years bond are near to 1.Many Europen Economies have negative interest rates.If you look at graph,Curve has a high point.

Strong Dollar ($)

Two days ago Dear Donald J. TRUMP who is president of USA said Dollar is so powerful because of me people trust me .I think it is a true idea.He promises  new factories,new infrastructures,new ways and the most important thing taxing regulation and new healthing system program.It means investing and growing up.

But  another reason is USA economy has a really powerful  acceleration.FED  has been arriving all targets since 2013.FED said in 2013 October there is no QE any more no CHEAP money for all developing contries and investors.

First aims are 1-)Inflation %2,0 2-)Unemployment rate %4,4-4,5.

In this graph it summarizes US Wage and salaries growth,they raise up for a long time.Dallas Fed Manufacturing Index,Cleveland  Consumer Trusting Index have a stabil line,Also they help controlling and dropping unemployment rate.

US inflation;it is so important or can be the most important parameter for an economy.In 2014  Janet YELLEN  said we will a tigh monetary policy.What does it  means? 

1-) NO QE,Ex FED president Ben BERNANKE finished to buy QE

2-)OK No QE means tight monetary policy.1-) Raising Interest Ratings 2-)No cheap money

First  raising interest ratings started in 2015,US 2 years bonds were near 0,1.Now it is %1,26 .Also Inflation is near to 1 now is 2,7.Target was %2,0.

USA Economy grows up.I believe that realistic economy policies are the key of economic strenght and wealth.

Look the new week

I wrote my last article one months ago  what changed? Bist 100 Index raised %3,1  value yesterday   which was 91140  also one months ago has 88000,90,0000 level which has a high volatality.Banking stocks jumps yesterday.

Dolar /TL has a  stabil sitiuaution which has no a large volatility,3,71-3,73.TCMB still makes currency exchange deposit with regularly.However overnight funding is %11,49.

In this graphic describes Turkish 10 years bond treasure which level is %11,34-11,58.Actually 10 years treasure and 2 years treasure  have  near levels.TCMB  goes with tight stance with treasury auctions,currency exchange deposit.