Daily Bulletin

Good morning. While progress is being made in the U.S.-China negotiations, global markets have begun to focus on rising risks in the Middle East. The United States’ withdrawal of certain military and diplomatic personnel and their families from the region is being interpreted as a signal of potentially escalating geopolitical tensions between the U.S., Iran, and Israel. Reciprocal statements from the involved parties continue to fuel this tension. We observe that global markets are reacting negatively to these developments, with U.S. and European futures, as well as Asian equities, trading broadly in negative territory. In the VIOP (futures market), a nearly 1% pullback was seen toward the close of the evening session yesterday. Accordingly, we expect a weak opening on Borsa Istanbul this morning. Following the open, the 100- and 200-day exponential moving averages around the 9,570 level may act as key support. The 9,800 – 10,000 region continues to serve as a notable resistance area. Yesterday’s CPI data from the U.S. came in line with expectations. Today, PPI figures will be released. While April’s monthly PPI remained in negative territory, the May figures are expected to turn positive, with a likely uptick in annual producer inflation metrics. Although yesterday's CPI data had little market impact, today’s PPI release could exert pressure on the markets. Turkey’s 5-year CDS premium starts the day at 289 basis points.