Daily Bulletin

Good morning. While the U.S. markets closed in positive territory yesterday, futures are flat this morning. In Europe, markets will remain closed today due to the Christmas holiday. In Asia, the sentiment is mixed but predominantly positive on average. The weak outlook in Borsa Istanbul persists. After approaching 10,300 on December 9 with expectations of Syria's reconstruction, the BIST 100 index has since been under constant pressure, falling to as low as 9,600. As critical support levels continue to be breached, momentum remains in negative territory. The pressure on BIST is attributed to prolonged uncertainty surrounding the minimum wage hike and the emergence of discussions about significant increases, which have reduced expectations for a rate cut from the Monetary Policy Committee (MPC). If the minimum wage rises significantly above the inflation rate projected for 2025, optimism regarding the disinflation process may diminish. In this case, we might see upward revisions to inflation forecasts. Therefore, we expect the pressure on BIST to persist until the wage hike rate is finalized. Additionally, this Thursday’s interest rate decision from the MPC and its forward guidance will be significant. Today's agenda is quiet. Turkey’s 5-year CDS premiums start the day at 256 basis points. It's worth noting that CDS levels tested above 260 basis points during yesterday’s session.