Daily Bulletin

Good morning. Despite the initiation of the process of suspending non-essential government activities in the U.S. (government shutdown) and the significant uncertainty about its duration, U.S. equities continue to rise. The prevailing view remains that the situation will not last long and will not inflict material damage on the U.S. economy. However, as time passes and no resolution emerges, we may see selling pressure on Wall Street. Looking at this morning, U.S. and European futures, as well as all Asian markets, are trading in positive territory. On Borsa Istanbul, the BIST 100 index experienced a strong rebound of nearly 3% from the 10,900 levels tested around midday yesterday and closed the session up 1.9% at 11,220. Supported by rising volumes, foreign inflows, and liquidity entries, this move also pushed the index above its 5-, 10-, and 22-day moving averages, generating a technically important short-term positive signal. Should the positive momentum continue today, the next target area will be the historic peak region of 11,500 / 11,600. Beyond this level, the 11,800 / 12,000 range and the 12,300 resistance level will be monitored. Initial support for the BIST 100 index is located in the 10,850 / 10,900 area. On today’s agenda, domestic data includes weekly foreign securities transactions and reserves, while Europe will release employment figures. In the U.S., jobless claims and factory orders are scheduled. However, due to the suspension of certain government operations, there is a possibility that these data may not be released. Markets may focus less on the figures themselves and more on whether they are published at all. Turkey’s 5-year CDS premiums start the day at 256 basis points.