Daily Bulletin

Good morning. In the Fed minutes, despite weak employment data, inflation-related risks were emphasized as the priority, leading to a continued decline in expectations for a rate cut at the September 17 Fed meeting. In addition to this discouraging development, the lack of near-term catalysts and concerns from some institutions about excessive valuations in technology companies have also fueled further selling. Another noteworthy point is the increase in trading volumes in assets positioned for downside exposure to U.S. equities as well as in hedging instruments. This morning, U.S. and European futures are slightly negative, while Asian markets show a mixed picture. In Borsa Istanbul, the index posted a notable 1.6% gain yesterday, supported by increased inflows and higher trading volumes above the 11,000–11,100 resistance zone. Although buying is not broad-based, the technical outlook of the index remains positive. In the short term, the historical high in TL terms at 11,252 stands as both a resistance and a target level. Beyond this point, the previously highlighted dollar-based near-term target range of 11,500–12,000 will come into focus. Rate cut expectations from the CBRT and a Q2 2025 earnings season that has been relatively more favorable compared to prior quarters and forecasts continue to serve as the main drivers for the index during this period.