Daily Bulletin

Good morning. The U.S. decision to suspend additional tariffs on Mexico and Canada for one month has led to buying activity in global markets. However, despite a rebound from losses of around 2%, U.S. and European stock markets still closed in negative territory. Meanwhile, U.S. and European futures, along with Asian markets, are in positive territory this morning. At Borsa Istanbul, sharp sell-offs were observed yesterday, reaching the 100-day exponential moving average. The higher-than-expected January CPI data and growing concerns over potential interest rate cuts by the Monetary Policy Committee (PPK) also contributed to the selling pressure. If growth and consumption remain strong, as seen in 2022, BIST could even react positively to high inflation. However, in the current period, weak growth combined with high inflation is highly unfavorable for BIST. Given the lack of supportive factors in the current agenda, we are in a period where the existing pricing in BIST is not yet behind us. While we expect partial rebounds this morning, we believe the pressure on the stock market may persist. That said, as long as long-term valuations continue to indicate levels above 14,000, we do not anticipate a significant outflow of funds from Borsa Istanbul, and we expect pullbacks to be used as buying opportunities. In the short term, support levels for the BIST 100 are at 9,740 and 9,660, while resistance levels are at 9,850 and 9,920. The economic calendar for the day is relatively quiet, with mid-level data releases such as U.S. factory orders. Turkey’s 5-year CDS premium starts the day at 253 basis points.