Daily Bulletin

Good morning. The day begins with U.S. President Donald Trump removing Federal Reserve Board member Lisa Cook over a serious allegation of “mortgage fraud,” while Cook resists, stating that he has “no authority” to do so. In the U.S., where legal rights and regulatory frameworks are given high priority, concerns over political intervention and deviation from the legal basis are weighing on U.S. assets. Wall Street closed lower, and U.S. futures are also trading in negative territory this morning. Additionally, U.S. Treasuries faced selling pressure, while the DXY Dollar Index initially weakened but then recovered. European futures and Asian equities are also in negative territory this morning. The BIST 100 Index tested 11,500 yesterday but closed at 11,477. Although modest capital outflows were observed, the positive momentum and upward trend remain intact. As long as the index holds above the 11,320 and 11,100 support levels, the 11,500 / 12,000 range will remain in focus as the next target. Two regulatory items are on the agenda: first, the potential non-extension of the short-selling ban expiring on August 29; second, the updated rules for index calculations. We do not expect these developments to have a significant market impact. Based on company valuations, our 12-month target level for the BIST 100 Index has risen to 14,800, where the rally could stabilize within the 14,800 / 15,000 range. On today’s agenda, U.S. housing prices, Fed activity indices, and confidence indices will be watched. These data releases may have limited market impact, while Thursday and Friday’s growth and inflation indicators will be more critical. Turkey’s 5-year CDS premiums open the day at 264 basis points.