Daily Bulletin

Good morning. Global markets are starting the new week on a positive note. U.S. and European futures, as well as Asian equities, are generally trading higher. In Borsa Istanbul, however, we saw a notable decline of up to 2% on Friday, which we believe was mainly driven by non-economic factors. These effects are likely to persist, yet we may see some support from the prevailing optimism abroad. For the BIST 100 index, support levels are at 11,070 and 11,000, while the resistance zone is at 11,250 / 11,300. The 11,000 support level is critical; a break below this could open a swift downward move toward the 10,300 / 10,600 zone. Therefore, considering the recent loss of momentum, we believe it is prudent to remain cautious and adhere to stop-loss discipline. On today’s agenda, the Cabinet meeting and the economic confidence index will be monitored domestically, while pending home sales will be followed in the U.S. Later in the week, Friday’s September inflation data in Turkey will come to the forefront. Monthly CPI is expected to rise around 2.5%, bringing annual CPI down to approximately 32.5%. In the U.S., employment data will be in focus this week. Turkey’s 5-year CDS premiums are starting the day at 260 basis points this morning.