Daily Bulletin

Good morning. A cautious optimism continues to prevail in global equity markets. While the United States maintains a moderate tone regarding customs tariffs, the legislative process concerning the much-anticipated "tax cuts" since the presidential elections is reportedly making progress. According to statements from President Trump, the U.S. is working on what is set to be the largest tax cut package in its history, with the aim of enacting the legislation before the end of summer. Given the potentially substantial supportive impact of this reform on U.S. equity markets, we believe that any progress on this front will continue to underpin market sentiment. Turning to today’s session, after a sharp rally from around 9,000 to 9,800 over the past three days, we observed a loss of momentum yesterday. Significant capital outflows and foreign investor selling were also notable. Nonetheless, the short-term technical outlook has not yet deteriorated meaningfully. As long as the index remains above the 9,570 support level, the technical picture remains constructive. On the upside, 9,780 stands out as a key resistance level. Today's economic agenda is relatively light. Turkey’s 5-year CDS premiums start the day at 307 basis points. Should we see a further decline toward the 250 basis point level, this may offer some support to the banking index stocks. However, it is important to note that the outlook for second-quarter bank earnings remains weak due to persistently high funding costs.