Daily Bulletin

Good morning. Global markets are starting the new week following reports of a criminal subpoena issued by the U.S. Department of Justice to Fed Chair Jerome Powell. The subpoena, arriving at a time when concerns over the independence of the Federal Reserve and broader questions regarding the functioning of institutional structures and the constitutional system are intensifying, together with Powell’s subsequent remarks, has triggered selling pressure of approximately 0.50%–0.80% in U.S. equity futures this morning. In contrast, European futures are trading broadly flat, while open Asian markets are generally in positive territory. Nevertheless, there is a possibility of weakness emerging in European equities as the day progresses. We do not expect Borsa Istanbul to be materially affected by these developments. The BIST 100 Index, which gained 0.93% on Friday, closed at 12,200—its intraday high—marking a new all-time high in TRY terms. Capital inflows and elevated trading volumes remain supportive. On Friday, the top positive contributors to the index were ASELS, BIMAS, AKBNK, PASEU, and KTLEV, while SASA, THYAO, TCELL, SISE, and ENKAI exerted negative contributions. Over the course of last week, stocks that stood out due to consistent capital inflows included ASELS, KCHOL, BIMAS, ASTOR, PGSUS, and TUPRS. From a technical perspective, the 12,200–12,500 range may serve as a consolidation zone. However, based on USD-denominated charts and current exchange rates, the next resistance area is identified at the 12,800–13,000 levels. Given the prevailing momentum, sustained capital inflows, increasing volumes, and ongoing upward revisions in company valuations, we believe the index has the potential to advance toward this zone. The agenda for the day is relatively quiet. Turkey’s 5-year CDS spreads are starting the day at 216 basis points. Following the U.S. intervention in Venezuela, the upward momentum in CDS spreads has slowed; however, geopolitical risks remain in place.