Daily Bulletin

Good morning. Despite U.S. President Trump’s continued insistence on the transfer of Greenland to the United States, recent statements in which he (i) ruled out military options, (ii) emphasized a preference for peaceful means, and (iii) stepped back from the additional tariffs announced last week on certain European countries have provided a morale boost to global markets. U.S. equities advanced by more than 1% yesterday, while U.S. and European futures, along with Asian markets, are trading broadly in positive territory this morning. In Borsa Istanbul, the BIST 100 index declined by 0.6% yesterday, largely driven by ASELS hitting the daily limit down. Excluding ASELS, however, we estimate that the index actually rose by 0.4%. Banks stood out with strong inflows and positive technical setups, as all eight banking stocks in the BIST 100 posted average gains of around 2%. Broad-based inflows and elevated trading volumes across the index also remain intact. KLRHO, AKBNK, ISCTR, THYAO and YKBNK provided the strongest positive contributions to the index, while ASELS, TUPRS, BIMAS, ASTOR and BRSAN weighed on performance. Stocks attracting consistent inflows over the past week include YKBNK, AKBNK, THYAO, CWENE and VAKBN. From a technical perspective, resistance levels are seen at 12,840, 12,900 and 13,000, while support levels are located at 12,600 and 12,520. On today’s agenda, the domestic focus will be on the MPC rate decision, reserve data and foreign investor flows. We expect a 150 basis point rate cut from the MPC. In the U.S., growth and inflation data will be closely monitored. Turkey’s 5-year CDS spreads start the day at 215 basis points.