Daily Bulletin

Good morning. US President Trump’s decision to extend the 48-hour deadline given to Iran by another five days provided some relief to global markets. Following the announcement, Brent crude oil prices fell from USD 110 to as low as USD 93, while global equities saw notable buying interest. However, with the Iranian side stating that no talks have taken place and it becoming clear that the war environment is set to continue, US and European futures are back in negative territory this morning, while oil prices are once again being priced around USD 100. In Borsa Istanbul, the market fell as much as 3% yesterday, down to 12,600, but then staged a nearly 4% rebound to 13,168 after Trump’s “five-day postponement” message on the strikes, with the BIST 100 Index ending the day up 0.9% at the session high. The top five positive contributors to the index were ASELS, SISE, THYAO, ENKAI and EREGL, while ENJSA, ISCTR, TRMET, AKBNK and BTCIM were the main drags. Stocks that have stood out with consistent money inflows over the past week were CANTE, IZENR, VAKBN, ENKAI, BLUME and KRDMB. At the time Borsa Istanbul closed at the day’s high, Brent crude was also trading near its intraday low of around USD 93. However, with oil prices back at the USD 100 level this morning, and given the negative correlation between equities and oil prices in the current environment, we expect a weak opening for BIST today. The 12,800 / 13,000 range may be monitored as the initial support zone, while resistance levels stand at 13,300 and the 13,450 / 13,550 range. On today’s agenda, real sector confidence and capacity utilization data will be followed domestically, while PMI releases in Europe and the US will be monitored abroad. Turkey’s 5-year CDS starts the day at 289 bps.