Daily Bulletin

Good morning. Global risk appetite is positive this morning; however, expectations of a rise in the U.S. PPI and CPI data to be announced today and tomorrow may limit buying interest. Borsa Istanbul experienced a 1.8% decline yesterday. While some of the selling pressure was influenced by external factors, domestic developments such as bridge and highway toll increases exceeding expected inflation, and signals of a potential mid-year adjustment to the minimum wage, have heightened uncertainties surrounding the disinflation process and contributed to the selling. That said, we believe Borsa Istanbul may seek a recovery today in line with external markets. From a technical perspective, support levels are at 9,690 and 9,560, while resistance levels are at 9,770 and 9,800. For the BIST 100 index, we expect mid-term oscillations to continue within the broader range of 9,500 to 10,300. Today's agenda highlights the U.S. PPI data release at 16:30 (local time). Annual PPI is expected to rise significantly from 3.0% to 3.5%. Core PPI, which excludes food and energy, is also anticipated to increase from 3.4% to 3.8%. In a period when expectations for Fed rate cuts have already diminished, and the first cut has been deferred to almost year-end, high inflation data could further dampen market sentiment. Turkey's CDS premiums are also on the rise. The latest quotes for 5-year CDS premiums are priced at 275 basis points.