Daily Bulletin

Good morning. The weakness in global risk appetite continues. The U.S. temporarily suspending additional tariffs on Mexico and Canada for a month led to buying in the stock markets yesterday. However, this morning, futures index contracts are once again significantly in negative territory. At Borsa Istanbul, despite seeing a rebound up to 9,900 yesterday, we closed the day at 9,807 points. The weak momentum in BIST also persists. High inflation figures and the partial scaling back of interest rate cut expectations from the Central Bank's Monetary Policy Committee (PPK) may continue to exert pressure on Borsa Istanbul for some time. Nevertheless, upward revisions in 12-month BIST 100 index targets, calculated based on company valuations, are ongoing. The latest figures point to an index target slightly above 14,000, implying a potential return of 45% at the index level. For stocks expected to outperform the index, even higher return potentials are being calculated. However, due to weak investor confidence and risk appetite, despite these attractive return potentials, BIST remains in a fragile period. Long-term investors are using this period for "accumulation," leading to capital inflows. Investors should not overlook this situation. Once the stress surrounding Trump eases, we may see more pronounced reactions in global markets and BIST. On today's agenda, PMI and employment-related data from Europe and the U.S. stand out. Turkey's 5-year CDS premiums start the day at 250 basis points.