Daily Bulletin

Good morning. Global risk appetite remains balanced. In the U.S., political pressure on Fed Chair Powell continues, although its impact on markets has so far been limited. Domestically, the week started with nearly a 2.5% rally in Borsa Istanbul, driven by expectations of a rate cut from the CBRT's Monetary Policy Committee (MPC) and speculation about a potential credit rating upgrade from Moody’s. In the short term, we believe the BIST 100 Index has room to move towards the 10,800 / 11,000 range. This zone could be tested ahead of Thursday’s MPC rate decision at 2:00 PM local time. The 10,300 / 10,400 range now acts as a support level. Should the MPC deliver a 250 basis point rate cut and signal further easing, we expect the positive momentum in Borsa Istanbul to continue. From a long-term valuation perspective, the BIST 100 Index is once again approaching the 14,000 target level. In a scenario where non-economic risks do not escalate, we believe Borsa Istanbul could return to its primary upward trend. Today’s agenda is relatively quiet, with no major macro data releases either domestically or abroad. Markets will be watching Fed Chair Powell’s remarks at 3:30 PM local time. Turkey’s 5-year CDS premium opens the day at 285 basis points.