Daily Bulletin

Good morning. Tensions between the US and Iran continue to escalate, while oil prices have also moved higher in parallel, approaching $95. We are also seeing a notable rise in US Treasury yields, while concerns over rising macro risks due to high public debt are weighing on equity markets. US and European futures, as well as Asian equities, are trading lower this morning, with losses of up to 3% particularly notable across Asia. The weak outlook in Borsa Istanbul is also continuing. The BIST 100 Index fell 0.7% yesterday to 14,229 points. The five companies making the largest positive contributions to the index were DSTKF, TUPRS, BIMAS, TCELL, and GARAN, while KTLEV, ODINE, ASTOR, EREGL, and TRALT were the largest negative contributors. The companies that have stood out with regular money inflows over the past week are ANELE, SELEC, SASA, MANAS, PETKM, KUYAS, GEDZA, ARTMS, AGESA, and GLCVY. BIST may open weak this morning, given the sell-off in global markets and growth-oriented data pointing to a recent loss of momentum in the domestic economy. However, tomorrow’s headline Turkish inflation data could help stabilize the market following yesterday’s Istanbul retail price index, which rose 1.66% month-on-month, increasing the possibility of a relatively low headline inflation reading. From a technical perspective, 14,150 and 14,070 are the key support levels to watch during the day, while 14,320 and 14,450 stand out as resistance levels. On today’s agenda, US private payrolls and factory orders are the key data releases to monitor. Turkey’s 5-year CDS premium is starting the day at 219 basis points.