Daily Bulletin

Good morning. Global risk appetite is slightly positive this morning. While U.S. equities moved back toward record-high levels yesterday, futures are flat this morning. In Europe, after yesterday’s sideways session, futures are notably bid today. In Asia, the Nikkei is strong, while the others are balanced. At Borsa Istanbul, yesterday’s inflation print of 0.87%—below expectations of the 1.2–1.4% range—and supportive of rising expectations for a rate cut at the December 11 MPC meeting, triggered inflows into banks and upward price action. However, lower inflation and ongoing speculation about a “minimum wage hike above expected inflation” led to selling in retail trade companies. Combined with FROTO’s dividend-related 13-point drag and DSTKF hitting limit-down, the BIST 100 index fell 0.78% yesterday. The top five positive contributors to the index were YKBNK, AKBNK, RALYH, CWENE, and SAHOL, while the main negative contributors were BIMAS, DSTKF, THYAO, ASELS, and MGROS. Companies that have attracted steady inflows over the past week include HALKB, SAHOL, OYAKC, VAKBN, LINK, ENKAI, and ALARK. Technically, the 10,950 / 11,000 and 10,700 / 10,800 zones are key support regions, while 11,200 / 11,250 and 11,500 / 11,600 are the resistance zones to monitor. On today’s agenda, domestic data includes CBRT reserves and weekly foreign flows, while Europe’s retail sales and U.S. weekly jobless claims will be followed. Turkey’s 5-year CDS continues to decline and stands at 233 bps this morning. Below 230 bps, Turkish lira assets would enter their most optimistic pricing zone since 2018, which we believe would gradually support banks and the BIST overall.