Daily Bulletin

Good morning. The recent statement by U.S. President Trump regarding the potential increase in tariffs on steel products from 25% to 50% is once again dampening global risk appetite. This morning, U.S. and European equity futures, along with open Asian markets, are trading in negative territory. We anticipate that the negative momentum carried over from last week will persist as Borsa Istanbul kicks off the new week. A decline below the 9,000 level on the BIST 100 index appears likely. From a technical perspective, 8,870 and 8,560 are key support levels, while 9,100 and 9,250 can be monitored as resistance levels. The Central Bank's weighted average cost of funding (WACF) has once again approached the 49% threshold. The weakness in the growth outlook remains evident, and preliminary forecasts for corporate second-quarter earnings largely point to a subdued outlook. Despite 12-month target levels for the BIST 100 suggesting an index value around 13,800 and an implied upside potential of over 50%, we believe the index will continue to struggle in finding meaningful catalysts. We maintain our cautious stance with a preference for reduced risk exposure. On today’s agenda, PMI data releases will be in focus both domestically and abroad. Additionally, a Cabinet meeting is scheduled in Turkey, and the continuation of Russia–Ukraine negotiations in Istanbul is expected. Turkey's 5-year CDS spreads started the day at 322 basis points.