Daily Bulletin

Good morning. Global equity markets are starting the new week on a positive note. Despite ongoing tensions, expectations for more conciliatory steps in the U.S.–China dispute, the continued pricing in of a potential Fed rate cut in June, stimulus and spending packages in Europe and Asia, and positive Q1 earnings results are supporting market sentiment. This morning, U.S. and European futures, along with Asian markets, are generally trading in positive territory. At Borsa Istanbul, the 9,500 resistance level was tested once again last Friday but was not breached. Nevertheless, momentum continues to improve on a daily basis, and capital inflows remain steady. According to CBRT data, following a net foreign outflow of $1.83 billion over the four weeks after March 19, a net foreign inflow of $269 million was recorded during the week of April 14–18. For the BIST 100 index, resistance levels are monitored at 9,500 and 9,580, while support zones are noted at 9,250/9,280 and 9,000/9,100. Today’s macroeconomic data calendar is relatively quiet; however, the agenda includes a Cabinet meeting and the release of important earnings reports from companies such as GARAN, OTKAR, TOASO, and THYAO after the market close. Later in the week, domestic earnings reports and key international indicators such as European inflation and growth data, along with U.S. employment figures, will be in focus. Based on the average 12-month BIST 100 index target price, which currently stands around 14,400 as calculated from domestic and international institutions' target prices, we may observe some minor downward revisions following earnings releases. Nevertheless, we expect the index’s potential return to remain in the 40%–45% range. Turkey’s 5-year CDS premium starts the day at 340 basis points.