Weekly Market Analysis / 08 August -12 August 2022

Last week, non-farm employment data in the US, the visit of the Speaker of the US House of Representatives Nancy Pelosi to Taiwan, and the Bank of England (BoE) interest rate decision came to the fore in global markets last week. Pelosi's visit to Taiwan on Tuesday increased tensions between the US and China, negatively affecting global markets. On Thursday, the Bank of England (BoE) increased its policy rate by 50 basis points from 1.25% to 1.75%, in line with expectations. Thus, the bank realized the sharpest increase in the policy rate since 1995. While raising its inflation expectations, the Bank predicted that the country's economy would enter recession in the fourth quarter of the year. Nonfarm payrolls in the US increased by 528,000 in July, well above the expectations for an increase of 258,000. The unemployment rate fell to 3.5%. The expectation was that the unemployment rate would remain at 3.6%. With the employment data coming above expectations, the expectation that the Fed could take a more hawkish step increased in the markets. While an ounce of gold opened the week at 1775 dollars, it rose to 1795 dollars with the Taiwan-China crisis. The barrel of Brent oil, which rose above $ 104 at the beginning of the week, fell below $ 93 on the last trading day of the week, with the effect of the expectation that the global economic slowdown will cause a decrease in demand.