Daily Bulletin

Good morning. First of all, we would like to extend our heartfelt wishes to all our citizens affected by yesterday’s earthquake and its aftershocks, which have once again reminded us of the reality of earthquakes. May it be the last, and may no one or their loved ones suffer any harm. During the one-day closure of our markets, we observed notable developments in global markets. Statements from U.S. President Trump, indicating that he does not intend to remove Fed Chair Powell from office and that he will not pursue excessively harsh policies toward China, brought gains of around 3-4% to U.S. and European markets during Tuesday and Wednesday trading. This morning, however, global risk appetite is somewhat weakening. At Borsa Istanbul, we expect a positive opening in line with the favorable market movements abroad during the closure. Given that no significant damage, destruction, or material losses have been reported due to the earthquake, we do not expect a severe earthquake-related pressure on Borsa Istanbul. However, ongoing aftershocks and any noticeable tremors throughout the day could negatively affect sentiment on the BIST. From a market and economy-focused perspective, it is important to note that the CBRT's Weighted Average Cost of Funding remains above 48%, which continues to exert downward pressure on growth prospects and consumption. This may lead to a decline in the current 12-month average BIST 100 index targets, which are above 14,000, to below the 14,000 level. Until the outlook becomes clearer, appetite for Turkish equities is likely to remain limited and volatility is expected to persist. From a technical standpoint, the support zones to watch in the short term are 9250 and 9000/9100, while resistance levels are at 9500 and 9580. On today’s agenda, domestically we will be watching real sector confidence and capacity utilization data, while abroad, U.S. durable goods orders and housing data will be followed. Turkey's 5-year CDS premiums start the day at 328 basis points.