Daily Bulletin

Good morning. While global risk appetite continues to exhibit a volatile trend, markets are showing signs of recovery as of this morning. Following the 90-day agreement between the United States and China, developments regarding tariffs have temporarily taken a back seat. International credit rating agency Moody’s downgraded the United States’ credit rating by one notch to “Aa1” for the first time in 108 years, citing high debt levels and a widening budget deficit. The outlook was revised from “negative” to “stable.” The pressure created by the downgrade was largely limited by the constructive two-hour meeting between U.S. President Trump and Russian President Putin. At the conclusion of the meeting, a decision was made to initiate negotiations aimed at ending the Russia-Ukraine war. Domestically, the BIST 100 index continues to seek direction following a rebound from the 9,000 level to as high as 9,800. At the close of last week, we observed a modest shift from recent capital outflows to inflows, with a recovery trend re-emerging in the index, particularly led by the banking sector. Today, we may continue to observe efforts by the BIST 100 index to hold above the 9,600 level. Both domestically and globally, the economic data agenda is relatively light today. Later in the week, on Thursday, the Central Bank of the Republic of Turkey (CBRT) is set to release the year’s second Inflation Report, which will be a key highlight in terms of the monetary policy outlook. Turkey’s 5-year CDS premiums start the day at 295 basis points.