By Murat Aslan and Aysu Bicer
ISTANBUL (AA) - Global stock markets remained calm after US President Joe Biden and Chinese President Xi Jinping met online to discuss economic and political issues with both leaders making constructive statements, and Jinping called Biden an "old friend."
Under Trump's presidency, China-US ties have strained for a very long time, with both sides trading war words.
On Monday, Biden signed the $1.2 trillion bipartisan infrastructure bill into law.
"This law makes the most significant investment in roads and bridges in the past 70 years," Biden said during a press conference at the White House before signing the bill.
The infrastructure bill includes plans to invest $550 billion in transportation, internet broadband and utilities.
Yesterday also saw the 10-year bond yield of the US reach its highest level since Oct. 27, with 1.629% yesterday, and the price of gold at $1,870 per ounce since Jun. 14.
Analysts said inflation pressure caused a change in investor behavior, noting many investors started to resort to investment instruments that could protect themselves from inflation.
They also said the retail sales data to be announced today contains clues about consumer behavior, as well as adding verbal guidance by the US Federal Reserve officials may also increase the volatility in asset prices.
- Europe
On the European side, political disagreements top the agenda.
Ursula von der Leyen, President of the European Union (EU) Commission, announced the EU would expand its sanctions against Belarus, including airline companies, due to the migrant crisis with Poland.
Kremlin spokesman Dmitriy Peskov said Russia could help as a "negotiator" regarding the migrant crisis on the Belarus-Polish border.
On the other hand, British Prime Minister Boris Johnson stated they want to continue negotiations with the EU to solve the problems regarding Northern Ireland. Still, it would be "completely legitimate" for them to suspend the Northern Ireland Protocol, which caused controversy.
On the other hand, European Central Bank (ECB) President Christine Lagarde stated that inflation might remain at high levels for a long time if energy prices or supply restrictions continue.
- Asia
On the Asian side, while measures are being increased in China, the problems in the real estate sector continue to exist.
Although the companies traded in the equity markets partially eased after China announced that it could loosen credit channels for the real estate sector, the issue has not been entirely resolved.
The allegations that the Kaisa company could not make coupon payments for its bonds increase the risk perception.
According to the data by China's commerce ministry, foreign direct investments in the country increased by 17.8% on an annual basis in the January-October period, reaching 943.1 billion yuan (about $142.01 billion).
Monday's data showed that the Japanese economy contracted 3% year-on-year in the third quarter – transgressing the expected figure of 0.8%.
The country's gross domestic product (GDP) shrank by 0.8% quarter-on-quarter amid COVID-19 restrictions and global chip supply shortages.