Daily Bulletin

Good morning. Global risk appetite remains strong, supported by expectations of Fed rate cuts as well as company-specific news flow. This morning, U.S. and European futures, along with Asian equities, are generally trading higher. Yesterday, Borsa Istanbul ended the day with a limited gain of 0.35%, while sensitivity to political developments continues. In the short-term outlook for the BIST 100 index, 10,400 is the first support and 10,600 is the first resistance level to watch. We expect a more pronounced rebound tendency today; however, the July industrial production data to be released at 10:00 a.m. will be critical in this regard. Calendar-adjusted industrial production had shown 8.3% year-on-year growth in June. A similar figure for July could be interpreted as a strong start to the third quarter and may further support the recent upward revisions in growth expectations for the Turkish economy. Later in the day, U.S. PPI will be released at 3:30 p.m., with a yearly increase of 3.3% expected. Although inflation data remains important, we believe that unless there is a significant deviation from expectations, it will not materially affect projections regarding the Fed. Turkey’s 5-year CDS premiums start the day at 273 basis points.