Daily Bulletin

Good morning. In the U.S., CPI came in line with expectations, but weakness in employment data persists, and expectations for Fed rate cuts continue to support global risk appetite. U.S. equities are hitting new highs, while European and Asian markets are also broadly bid. In Borsa Istanbul, despite the CBRT’s 250 basis point rate cut broadly in line with expectations, its emphasis on “rising risks to growth” and “political agenda-related uncertainties” continues to limit risk appetite. Yesterday, the BIST 100 Index fell 1.92%, with the top five positive contributors being TUPRS, PASEU, KTLEV, ENKAI, and IEYHO, while AKBNK, ASELS, DSTKF, THYAO, and GARAN weighed on the index. Trading volume was above average, with banks particularly standing out for their high volumes. In bank stocks, although there was an initial reactionary buying after the CBRT decision, subsequent trades saw a pullback; however, ISCTR and YKBNK stood out positively in terms of capital inflows. Other companies with steady inflows over the past week include TUPRS, TCELL, SAHOL, TRGYO, and BIMAS. In the short term, support levels on the BIST 100 are seen at 10,350 and 10,150, with resistance levels at 10,500 and 10,750. We may not see a meaningful increase in risk appetite on the BIST until the legal process known as the “CHP Congress Case,” expected on Monday (September 15), becomes clearer. On today’s agenda, the current account balance and the CBRT Market Participants Survey will be monitored domestically, while the international agenda remains calm. Turkey’s 5-year CDS started the day at 260 basis points. This decline is positive, but for a meaningful positive repricing of TL assets, levels below 250 basis points would be needed.