Daily Bulletin

Good morning. Federal Reserve Chair Powell stated that “the tariff effect is temporary, but inflation risks may persist for several more quarters due to supply chain issues” and highlighted that equity valuations are high, which triggered selling on Wall Street yesterday. In the U.S., comments about the high multiples of technology companies have become more frequent recently; however, given that the Fed has started cutting rates, this situation is viewed as reasonable and not a source of significant concern. Still, any development that could trigger profit-taking in U.S. equities might lead to a rapid pullback in the short term. Looking at this morning, U.S. futures are slightly positive, European futures are negative, and Asian markets show a mixed picture. In Borsa Istanbul, renewed political risk pricing yesterday closed the gap created on Monday, and the BIST 100 index ended the day down 1.1% at 11,332, remaining above the 11,250 / 11,300 support band. In the short term, 11,250 / 11,300 is seen as support, while the 11,500 / 11,600 zone is watched as resistance. Today’s agenda includes domestic real sector confidence and industrial production, and U.S. new home sales and building permits. Turkey’s 5-year CDS spread starts the morning at 260 basis points.