Daily Bulletin

Good morning. As the U.S. “government shutdown” enters its sixth day, global markets this morning are focused on the leadership change within Japan’s ruling party. Sanae Takaichi, who is set to become Japan’s first female prime minister, is known for favoring loose monetary conditions and a weak yen—factors viewed as supportive for global equities. This morning, U.S. and European markets, along with open Asian exchanges, are broadly trading higher. Additionally, new record highs are being tested in gold, silver, and Bitcoin prices. In Borsa Istanbul, following Friday’s inflation data that exceeded expectations, the upward revision of year-end forecasts and the diminished expectations of a rate cut from the CBRT are sustaining weak momentum. After rising nearly 1,300 points in the week following September 15, the BIST 100 index has since retreated about 700 points over the next ten days, giving back roughly half of those gains. From a technical standpoint, following a double-top pattern, the BIST 100 index has room to decline toward 10,300, while the 10,600–10,650 range is being monitored as an intermediate support zone. Resistance levels are located at 11,000, 11,130, and within the 11,250–11,300 band. On today’s agenda, domestic focus will be on the real effective exchange rate, while in Europe, confidence indices will be tracked. Later in the week, attention will turn to the upcoming parliamentary presentation by CBRT Governor Fatih Karahan, as well as budget and industrial production data. In the U.S., the release of the Federal Reserve’s meeting minutes will be in focus. Turkey’s 5-year CDS spreads are starting the day at 257 basis points.