Daily Bulletin

Good morning. The decline in oil prices is continuing. Front-month Brent crude is approaching $85, while longer-dated contracts are seeing declines toward $80. The growing emphasis on the possibility of negotiations between the US and Iran, together with reports that the US has redeployed some diplomats who had been withdrawn from the conflict zone back to their posts, is increasing optimism that a renewed direct conflict may be avoided. US and European futures are broadly flat this morning, while gains are generally continuing across Asian markets. In Borsa Istanbul, we are seeing some profit-taking following the long-awaited and largely priced-in cut in the funding rate from 40% to 37%. The BIST 100 Index fell 0.2% yesterday to 14,473 points. The five companies making the largest positive contributions to the index were DSTKF, KTLEV, ODINE, ASELS, and BIMAS, while TUPRS, TRALT, CCOLA, TRMET, and EKGYO were the biggest negative contributors. The companies that have stood out with consistent net money inflows over the past week are YKBNK, TRALT, SELEC, SISE, ENKAI, KCHOL, and AKSGY. From a technical perspective, 14,540 and 14,650 can be monitored as intraday resistance levels, while 14,420 and 14,340 stand out as support levels. On today’s agenda, US GDP growth and core personal consumption expenditures data will be closely monitored. Turkey’s 5-year CDS premium is starting the day at 218 basis points. For the first time since the beginning of the war, CDS spreads are trading below 220 basis points, indicating the most optimistic pricing of Turkish sovereign risk over the same period. Continued declines in CDS spreads would support the XBANK Banking Index.