Daily Bulletin

Good morning. While U.S. futures started the day in negative territory, European futures and Asian markets are on the positive side. Israel's renewed operation in Gaza could weigh on global risk appetite later in the day. Yesterday, Borsa Istanbul tested the 10,900 level but failed to break through, leading to a loss of intraday momentum and a mostly flat session. After a three-week rally of 15% in TL terms and 14% in USD terms, it is normal to see some consolidation as we approach the 11,000–11,250 resistance zone. That being said, formation targets still point towards the 11,500 region. For this to materialize, the index needs to hold above the 10,800 and 10,650 support levels, with the primary support zone at 10,200–10,300. If these support levels are breached, reducing risk exposure may be preferable. Despite the loss of intraday momentum, the daily outlook for BIST remains positive. In USD or inflation-adjusted terms, current levels are still significantly below all-time highs. If momentum strengthens again, new record levels could be tested. Today's agenda includes Turkey’s housing price index and Treasury auctions, while in the U.S., data on building permits, housing starts, industrial production, and capacity utilization will be monitored. Tomorrow, the focus will be on the Fed's interest rate decision. Turkey’s 5-year CDS started the day at 256 basis points.