Daily Bulletin

Good morning. Global markets are starting the new day with a balanced outlook. U.S. and European futures are slightly in negative territory, while Asian equity markets are seeing gains. Yesterday, the significantly lower-than-expected U.S. private sector employment data led to a renewed shift forward in expectations for Fed rate cuts. However, we do not anticipate this repricing to be sustained. Additionally, markets monitored warnings that proposed corporate tax cuts in the U.S. could impose an additional burden of nearly $2.5 trillion on the federal budget. Domestically, the upward momentum that strengthened following the inflation data continued yesterday. The BIST 100 index approached the 9,500 resistance level and closed the day at its intraday high of 9,475. Fund inflows and improvements in technical indicators are ongoing; however, macroeconomic risks to growth and non-economic uncertainties remain in place. Therefore, as we noted yesterday, while we maintain our view that the 9,500–9,800 resistance zone could be tested, we believe that a move beyond this region would require new and positive catalysts. In the event of a pullback in BIST, the 9,340 and 9,250 levels can be followed as support. On today’s agenda, domestic weekly foreign transactions, Eurozone PPI, the ECB interest rate decision, and weekly jobless claims data from the U.S. will be monitored. Turkey's 5-year CDS premiums open the day at 298 basis points.