Daily Bulletin

Good morning. The announcement that the U.S.–China meeting will take place on October 30, along with some better-than-expected corporate earnings, is driving global equities higher. This morning, U.S. and European futures, as well as all major Asian indices, are trading in positive territory. In Borsa Istanbul, we observed a move above the 10,600 level yesterday. The Monetary Policy Committee (MPC) delivered a 100 basis point rate cut, which was in line with expectations. The statement highlighted a deterioration in the inflation outlook and a slowing disinflation process; nevertheless, the current policy rate (39.50%) and its annualized compound equivalent (48.4%) still indicate a significantly positive real yield. Therefore, we believe the CBRT still has room for further rate cuts in upcoming meetings and we expect another 100 basis point cut at the December meeting. From a technical perspective, the BIST 100 index closed within the 10,600–10,700 resistance range. Today, headlines related to the CHP Congress case will likely be followed closely. A decisive move above 10,700 could lead to a swift rally toward 11,000, while on the downside, the 10,200–10,300 region remains an important support zone. Yesterday, the top five contributors to the index were TUPRS, BIMAS, TOASO, AKBNK, and SASA, while TUPRS, TOASO, VAKBN, and KRDMD stood out as the main beneficiaries of continued fund inflows over the past week. On today’s agenda, PMI data from Europe and the U.S. will be in focus. In the U.S., CPI data is also expected to be released according to its postponed schedule. Meanwhile, Turkey’s 5-year CDS spread started the day flat at 267 basis points.