Daily Bulletin

Good morning. The U.S.–Iran tensions continue, but bargain hunting in semiconductor stocks and stronger-than-expected financial results from General Motors, accompanied by upward revisions to guidance, supported buying interest on Wall Street. This morning, U.S. futures are weaker, while European futures and Asian equities are generally trading higher. Domestically, comments from JPMorgan and Citigroup regarding Turkish corporates and government bonds drew attention. JPMorgan recommended increasing exposure to selected corporate bonds, while Citigroup advised reducing positions in two-year Turkish lira-denominated government bonds, citing rising oil prices. Citi also highlighted that August has historically been a period when global carry trade positions can unwind, a risk worth monitoring. Expectations for a stronger Japanese yen and a potential unwinding of carry trades have been increasing due to the Bank of Japan’s rate-hiking cycle. Such a development could weigh on global risk appetite. In Borsa Istanbul, the BIST 100 Index declined by 0.7% yesterday to close at 13,974. The top positive contributors to the index were ASELS, EUPWR, AEFES, TUPRS and TCELL, while DSTKF, THYAO, BIMAS, EREGL and KTLEV exerted the largest negative impact. Over the past week, stocks attracting consistent capital inflows included EUPWR, AKSEN, TUPRS, EFOR, BRSAN, HALKB, CIMSA, AEFES and MANAS. For the BIST 100, support levels can be monitored at 13,900, 13,810 and 13,600, while resistance levels stand at 14,130 and 14,200–14,250. On today’s economic calendar, Turkey’s July Real Sector Confidence Index and Capacity Utilization Rate will be closely followed. The Real Sector Confidence Index has remained above the key 100 threshold for two consecutive months. Meanwhile, the Capacity Utilization Rate continues to hover around 75%, remaining close to its historical average. Finally, Turkey’s 5-year CDS premium starts the day at 237 basis points.