In a remarkable week of investment, foreign investors have poured $891 million into Türkiye’s lira-denominated government bonds. This robust influx of capital, the largest weekly amount since 2020, demonstrates a renewed confidence in Türkiye’s financial markets. Alongside this, the nation’s stock market also experienced a significant boost, with inflows amounting to $562 million, a peak unparalleled since 2020. The combined holdings of foreign investors in Türkiye’s local-currency bonds have now swelled to a considerable $2.4 billion,a leap from the former lows of just over $1 billion.
Market Optimism Amid Potential Interest Rate Cuts
Traders are displaying optimism for the upcoming year, anticipating potential interest rate cuts that have driven a rally in stocks and other high-risk assets. Many are investing more heavily in technology companies yet to turn a profit, betting on the idea that lower borrowing costs will favor these enterprises. Nevertheless, concerns linger regarding the potential risks from shifts in monetary policy, geopolitical factors, and the imminent presidential election.
Private Equity Giants and Deferred Debt Payments
As higher debt costs for M&A deals loom, private equity giants are resorting to a new spin on an old strategy: borrowing as much money as possible and delaying its repayment. This approach has been adopted by ATB Capital Markets, mandated to sell the remaining assets of Canadian hedge fund Traynor Ridge Capital Inc., which fell apart following the unexpected death of its founder.
Bitcoin and Ethereum on the Rebound
Popular cryptocurrencies Bitcoin and Ethereum are showing signs of recovery, with a substantial influx of funds detected. On-chain analyst Ali Martinez reported a surge of funds exceeding $19.7 billion on December 14th, echoing historical patterns. Amidst this rally, BTC options led the charge, with a significant whale taking long positions. Short-term investors have begun to capitalize on their profits, triggering a sell-off. Market commentators anticipate Bitcoin to surpass the $42,000 to $45,000 range and reach $63,000. One of BitMEX’s co-founders even predicts that Bitcoin’s price will eventually hit $1 million.
Source: bnnbreaking