Daily Bulletin

Good morning. Global risk appetite presents a mixed outlook. U.S. futures contracts are slightly negative this morning, but buying activity, especially in technology stocks, continued yesterday. Following Trump’s election as the 47th President, domestic political instability in influential international countries persists. After France, Germany, and South Korea, Canada—referred to by Trump as the 51st state and subject to increased tariffs—saw its Finance Minister resign, citing the current government’s policies as the reason. The decision to hold early elections in Germany, following France, has also weakened perceptions of stability in the region. Asian markets are mixed, with signs of momentum loss across the region. On the other hand, Borsa Istanbul closed 1.26% lower yesterday, just below the 10,000 level. A short-term technical deterioration is noticeable, with the BIST 100 index potentially retreating to the 9,750 support level if it falls below 10,000. However, expectations of improvement in Q4 2024 and Q1 2025 financial results, anticipated interest rate cuts by the Monetary Policy Committee (MPC) in its December 26 meeting, declining CDS premiums, and upward revisions in valuations are factors that are expected to support BIST in the medium to long term. Today's agenda includes housing sector data and Treasury auctions domestically, while retail sales, industrial production, and capacity utilization data will be monitored in the U.S. Turkey’s 5-year CDS premiums start the day at 249 basis points.