Daily Bulletin

Good morning. Following U.S. President Trump’s accusation of “mortgage fraud” against Federal Reserve Board member Cook and his threat of removal, Trump stated he would “wait for the court’s decision,” while company-specific developments fueled a rebound in U.S. equities yesterday. This morning, U.S. and European futures are trading higher; however, political deadlock in France has triggered budgetary concerns, raising the prospect of IMF involvement, and weighed on the Paris CAC40 Index with a 1.7% decline. Asian markets are also trading higher, and overall, global risk appetite can be described as broadly positive. In the U.S., Trump’s continued pressure on the Fed, renewed sanction threats against Russia, and the highly anticipated Nvidia earnings due this evening remain in focus. The Borsa Istanbul 100 Index set fresh records yesterday, reaching an intraday high of 11,605 and closing at 11,529, supported by one of the strongest trading volumes on record. Capital inflows and foreign investor demand also continue. With the current momentum, the BIST 100 is expected to target the 11,800 / 12,000 resistance range, while dollar-based charts indicate a short-term index target near 12,200. On the downside, 11,400 and 11,100 remain key support levels. Based on company valuations, our 12-month target for the BIST 100 Index has risen to 14,800, implying a 28% upside potential. Today’s agenda is relatively light, with markets instead looking ahead to U.S. growth and inflation data to be released on Thursday and Friday. Turkey’s 5-year CDS premiums open the day at 265 basis points.