Daily Bulletin

Good morning. U.S. President Trump is expected to announce his nominee for the Federal Reserve Chair today, with former Fed official Kevin Warsh emerging as a leading candidate. Given Warsh’s relatively hawkish stance, leaning toward tighter monetary policies, profit-taking is being observed in precious metals. On the equity side, U.S. futures are negative, European futures are positive, and Asian markets are mixed but generally display a weak overall tone. In contrast, the rally in Borsa Istanbul continues. The BIST 100 Index rose 3.2% yesterday, closing at a new record high of 13,831, while trading volume also set a new record at TRY 302.5 billion, surpassing the previous record by 16%. Foreign inflows and buying interest remain strong. The top five contributors to the index were KLRHO, BIMAS, ASELS, AKBNK, and YKBNK, while TAVHL, CCOLA, ECILC, MPARK, and CIMSA had the most negative impact. Stocks attracting steady inflows over the past week include YKBNK, GARAN, AKBNK, ISCTR, GUBRF, SASA, and SAHOL. From a technical perspective, the 13,600–13,800 range can now be monitored as a support zone, with 14,000 as the first resistance level. However, on a USD-based chart, as long as the index remains above the 314-dollar level, there appears to be ample upside potential toward the 320–340 dollar range, which implies that the uptrend could extend toward 14,800 in TRY terms. On today’s agenda, domestic data will include the foreign trade balance and tourism figures; in Europe, growth and unemployment data will be monitored; and in the U.S., PPI data along with President Trump’s statements will be in focus. Turkey’s 5-year CDS premiums start the day at 221 basis points.