Daily Bulletin

Good morning. Following Fed Chair Powell's speech yesterday, expectations for rate cuts are increasingly being pushed toward the end of the year. If growth- and employment-focused data in the U.S. continue to show strength in the coming period, we believe that expectations for Fed rate cuts could be entirely shelved, and even discussions of rate hikes might emerge by mid-year. However, we do not expect this shift in monetary policy expectations to create significant market pressure due to the anticipated easing in fiscal policies (expectations of corporate tax cuts). Global markets are generally in a positive mood this morning. Borsa Istanbul saw a limited rebound of 0.4% yesterday, with an inflow of approximately 1 billion TL on an institutional basis. We expect this rebound to continue today within the 9,900 – 10,000 range. Long-term valuations continue to point toward index targets above 14,000. On today’s agenda, there are no significant data releases in Turkey or Europe, while U.S. CPI data will be closely watched. Turkey's 5-year CDS premiums start the day at 253 basis points.