Daily Bulletin

Good morning. Global risk appetite remains in positive territory following last night’s Fed meeting and Chairman Powell’s statements. Domestically, we expect the sharp depreciation in TL assets observed yesterday to be more limited today and for the market to seek stabilization, given the market movements at the end of the session and the lack of new news flow this morning. However, continued pressure on BIST is possible due to leveraged positions and margin call requirements of approximately TL 1.86 billion in VIOP today. Despite an 8.7% decline and high trading volume yesterday, the net capital outflow at the institutional level remained relatively limited at around TL 400 million, suggesting a potential rebound attempt after the opening. Nevertheless, we reiterate our call for maintaining low risk exposure and focusing on medium- to long-term positions during such high-volatility periods. On today’s agenda, domestic data releases include the CBRT reserves and foreign securities transactions, while construction, housing sector data, and employment indicators will be monitored in the US and Europe. One of the key risk indicators for TL assets, 5-year CDS premiums, surged from 256 basis points to as high as 280 basis points yesterday, with initial quotes this morning hovering around 274 basis points. We also observe a partial stabilization in the recent increase in short-term TL interest rates.