Daily Bulletin

Good morning. U.S. GDP growth data released yesterday came in above expectations, pushing Wall Street to fresh record highs. However, this data also complicates the case for a potential Fed rate cut on September 17, leading U.S. futures to start the day on a weaker note. European futures are likewise trading negative, while in Asia, China and Hong Kong are seeing buying interest, with the rest of the region mostly lower. In Borsa Istanbul, the loss of momentum continues. After slipping below 11,500 earlier this week, the BIST 100 index attempted a rebound yesterday but failed to sustain gains. Today marks the final trading session for August contracts on VIOP. The closing of arbitrage positions could create additional pressure on BIST. In the short term, key support levels for the BIST 100 index are at 11,320 and the 11,000 / 11,100 range, while resistance levels are at 11,500 / 11,600 and 11,800 / 12,000. On today’s agenda, domestic markets will be watching the unemployment rate as well as the extraordinary parliamentary session at 14:00, where Foreign Minister Fidan is expected to provide an update on policies regarding Gaza. Globally, the key focus will be on the U.S. core personal consumption expenditures (core PCE) data to be released at 15:30 local time. The annual figure is expected to rise from 2.8% to 2.9%, compared to the Fed’s target of 2%. The outcome may influence September 17 rate cut expectations and could increase volatility in global equities. Turkey’s 5-year CDS spreads start the day at 263 basis points.