Daily Bulletin

Good morning. Global risk appetite continues to remain in positive territory. Trump's measured initial steps regarding customs tariffs, expectations of relief in geopolitical risk parameters, and company-specific positive news flows are driving the S&P 500 index above 6,100 to new all-time highs. While the average target for the index is around 6,700, indicating a 10% potential in dollar terms, we also observe institutional targets of 7,000 and above. Therefore, as mentioned in yesterday’s Global Markets Bulletin, despite multiples trading above historical averages, the optimism toward U.S. equities persists due to expectations of easing fiscal policies and attractive valuations. Domestically, we followed the Central Bank's interest rate decision yesterday. As expected, the policy rate was reduced from 47.5% to 45%. While the message that decisions will remain data-driven and meeting-based was reiterated, we maintain our expectation of a 250 basis point rate cut in the March 6 meeting. Today, PMI data from the U.S. and Europe will be monitored, while after-market close, Moody’s decision regarding Turkey’s credit rating will be followed. Turkey’s rating, currently at “B1, positive,” four notches below “investment grade,” is expected to be upgraded by one notch to “Ba3, stable.” Should the outlook exceed expectations and remain “positive,” this could positively impact Turkish assets. Turkey’s 5-year CDS premium starts the day at 265 basis points.