Daily Bulletin

Good morning. In the U.S. Senate, the failure to approve the relevant funding plan has triggered a “government shutdown” process, which could disrupt non-essential public services and lead to unpaid furloughs. U.S. equities, which closed positively yesterday, are trading notably lower in futures this morning. European futures and open Asian markets, however, are showing a more balanced outlook. On Borsa Istanbul, the index declined by 0.33% yesterday; nevertheless, efforts to hold above the 11,000 level proved successful by the end of the session, with the index closing at 11,012. That said, the ongoing weak momentum suggests a cautious outlook for BIST will continue. In the short term, support levels are at 10,940 and 10,850, while resistance levels stand at 11,070 and 11,250 / 11,300. On today’s agenda, Turkey will release September manufacturing PMI data, while abroad the focus will be on European manufacturing PMI and CPI, alongside U.S. private sector employment, mortgage applications, manufacturing PMI, and ISM manufacturing indices. However, the primary market concern remains how long the U.S. government shutdown will last and what resolution will be reached. Back in 2018, during President Trump’s term, similar episodes occurred three times—the first lasting three days, the second just a few hours, but the third stretched to 35 days and caused significant economic damage. This time, a prolonged shutdown is not anticipated, yet market unease will persist until a lasting solution is secured. Turkey’s 5-year CDS premiums start the day at 257 basis points.