Daily Bulletin

Good morning. The recent moderate remarks by U.S. President Trump regarding customs tariffs, statements from certain Fed officials supporting expectations of a rate cut in June, and the positive trend in first-quarter results are supporting U.S. stock markets and global markets overall. This morning, U.S. and European futures, along with Asian markets, are generally trading in positive territory. Yesterday, Borsa Istanbul closed the session just below the 9,500 resistance level, with notable foreign inflows indicating strong capital entry. We expect the positive momentum in BIST to continue today as well. From a technical perspective, surpassing the 9,500–9,580 resistance zone could open the way for a move towards the 9,800–10,000 range. However, the elevated interest rate environment, the high utilization of reserves, and the persistent intensity of non-economic domestic developments are likely to limit the probability of a move beyond the 10,000 level in Borsa Istanbul. Although long-term valuations have recently pointed above the 14,000 level, given our view that high interest rates will persist for at least another quarter, we anticipate downward revisions in target prices in the coming period. Nevertheless, the newly adjusted targets are still expected to offer returns above anticipated inflation levels. Today’s agenda is relatively quiet in terms of data releases. In the evening, we await the Standard & Poor’s review of Turkey. We do not expect any changes to Turkey’s current “BB-, stable” rating and outlook. Turkey’s 5-year CDS premiums are starting the day at 332 basis points.