Daily Bulletin

Good morning. U.S. President Trump’s harsh criticism of Fed Chair Powell triggered a sell-off of up to 2.5% on Wall Street, while U.S. futures are showing a partial rebound this morning. European futures remain weak, whereas in Asia, buying is observed across most markets except Tokyo. Domestically, despite the policy rate standing at 46%, the Central Bank of Turkey’s Weighted Average Cost of Funding has exceeded 48%, and overnight interbank rates have climbed to around 49%. Commercial loan rates have also started to range between 55% and 65%. If these elevated costs persist for an extended period, they may exert downward pressure on growth and consumption. Consequently, the 12-month average BIST 100 index targets, which currently exceed 14,000, may fall below this threshold. Unless there is greater clarity on this outlook, investor appetite for Turkish equities is likely to remain subdued, and volatility may persist. From a technical perspective, in the short term, support zones are observed at 9,250 and 9,000/9,100, while resistance levels are seen at 9,500 and 9,580. On today’s agenda, the Consumer Confidence Index for April will be released domestically, while growth-oriented indicators and surveys will be monitored in both Europe and the U.S. Tomorrow, domestic markets will be closed in observance of National Sovereignty and Children’s Day (April 23). In contrast, PMI data will be closely followed in Europe and the U.S. Turkey’s 5-year CDS premiums start the day at 327 basis points.