Daily Bulletin

Good morning. As expected, the Fed kept its policy rate unchanged within the 4.25% - 4.50% range. The phrase "progress has been made in easing inflation" was removed from the statement, which can be interpreted as a hawkish signal. However, the market had already priced in the Fed's stance, expecting only one rate cut this year, likely in early June. Therefore, the Fed's decision does not have a significant impact on global markets this morning. Looking at the stock markets, U.S. and European futures are in positive territory, while Asian markets display a mixed outlook. On Borsa Istanbul, following JP Morgan’s "overweight" recommendation for Turkish equities, the index surged to 10,180 before retreating to 10,077 in the last hour of trading. Meanwhile, reports indicate that foreign interest in Turkish companies continues to grow, confirmed by the increasing number of recent analyst reports. The 12-month average target level for the BIST 100 index has climbed to 14,100. This potential, combined with expectations of real appreciation in the Turkish lira, suggests an attractive return in dollar terms, sustaining foreign investor interest. If capital inflows follow, we may see a more pronounced upward movement in BIST. Today's agenda includes growth data from Europe and the U.S., as well as the ECB interest rate decision. Turkey's 5-year CDS premiums start the day at 260 basis points.