Surprise Decisions and Major Shifts in Global Markets: Global markets witnessed a wave of sudden and impactful developments today,
starting with Turkey, where the central bank surprised markets by sharply raising interest rates,
officially ending its monetary easing cycle.
In the U.S., jobless claims hit a two-month low despite mounting economic concerns,
while investment giant Morgan Stanley posted a significant profit surge, driven by its asset management division.
These moves offer key signals about the direction of monetary policy,
labor market resilience, and evolving dynamics in the financial services sector.

Contents

Turkish Central Bank

U.S. Jobless Claims

Morgan Stanley

Turkish Central Bank Surprises Markets by Raising Interest Rates to 46%, Ends Easing Cycle.

On Thursday, the Central Bank of Turkey surprised financial markets
by raising its benchmark interest rate by 350 basis points to 46%,
marking an official end to the monetary easing cycle the bank had initiated months earlier.
The decision slightly boosted the Turkish lira following a period of market volatility,
especially after the arrest of Istanbul Mayor Ekrem İmamoğlu last month.

The bank also raised the overnight lending rate to 49%, up from 46%,
following an unscheduled rate hike last month during an emergency meeting.

It is worth noting that the central bank began loosening
monetary policy last December when the interest rate was at 50%.
This was after a series of aggressive tightening measures were introduced since mid-2023
to control soaring inflation and repeated collapses in the value of the local currency.

U.S. Jobless Claims Fall to Two-Month Low Despite Rising Economic Concerns

Jobless claims in the U.S. declined last week,
offering fresh evidence of a resilient labor market despite growing fears of a potential economic
slowdown driven by President Donald Trump’s trade policies.

Data released Thursday by the U.S. Department
of Labor showed initial jobless claims fell by 9,000 to 215,000 in the week ending April 12,
the lowest level in two months. Economists had expected 225,000 claims.
The previous week’s figure was revised upward to 224,000.

The four-week moving average, considered a more accurate gauge of labor market trends,
declined by 2,500 to 220,750, compared to the revised average of 223,250.

Morgan Stanley Posts 26.5% Profit Jump Driven by Asset Management

U.S. investment bank Morgan Stanley reported strong financial performance in its latest earnings,
Net profit surged 26.5% to $4.3 billion compared to last year.

The earnings report also showed a significant 17% increase in revenue, reaching $17.7 billion.
This robust performance was primarily attributed to a substantial improvement
in the bank’s asset management operations, which were pivotal in driving financial results.

This growth in earnings and revenue highlights the bank’s ability
to capitalize on market conditions and attract more assets and clients,
reinforcing its position as one of the world’s leading investment banks.

Despite the positive results, Morgan Stanley’s stock closed 2.43% lower yesterday at $107.86.
Investors are expected to closely watch the stock’s movements in upcoming sessions
as they assess the results’ impact on the bank’s future outlook.

Surprise Decisions and Major Shifts in Global Markets

*Image from ChatGPT

Surprise Decisions and Major Shifts in Global Markets

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