Daily Bulletin

Good morning. Although U.S. technology stocks saw a pullback yesterday, futures are positive this morning. In Europe and Asia, the overall outlook is also upbeat; consequently, global risk appetite is starting the new day on a positive note. Domestically, the meeting between President Erdoğan and U.S. President Trump is scheduled to take place in Washington this evening at 18:15 local time. Viewed positively in terms of Turkey–U.S. relations, the meeting is being followed by markets from the perspective of whether there will be progress on key pending issues such as the F-35 program, modernization of F-16s, and defense cooperation. In Borsa Istanbul, although political news flow may generate high volatility, we expect the main upward trend to continue. In the near term, support levels are seen at 11,250 and 11,100, while resistance levels stand at 11,420 and 11,500 / 11,600. Longer-term valuations continue to point to a target index level of around 15,000 for the BIST 100 over a 12-month horizon. Here, alongside interest rate cuts from the Monetary Policy Committee, we expect the ongoing decline in CDS spreads to particularly support the XBANK banking index. On today’s agenda, in addition to the Erdoğan–Trump meeting, domestic reserves and foreign transactions data as well as U.S. growth figures stand out. Turkey’s 5-year CDS premium starts the day at 258 basis points.