Daily Bulletin

Good morning. A renewed rise in geopolitical risks is pushing Brent crude oil prices to the USD 103 – 104 band. U.S. bond markets were closed yesterday; trading resumed today, but the 10-year U.S. Treasury yield is following a calm course around 5.20%. In Europe, ongoing budget concerns are still unsettling, and the upward trend in bond yields, particularly in France, continues. Although the spread between French and German 10-year bond yields was around 60 basis points throughout the year, it has climbed as high as 140 basis points in recent days and is above 100 basis points for the first time since 2012, the period of the European debt crisis. Looking at equity markets, we are seeing a weak but balance-seeking outlook on the global side this morning. U.S. and European futures and Asian markets are generally on the negative side, but there are recoveries compared to the early hours. In Borsa Istanbul, we ended the day yesterday at 12,150.67 points with a 0.9% decline. The companies contributing to the index were AKBNK, AGHOL, EREGL, SAHOL, YKBNK, while those with a negative impact on the index were ASELS, BIMAS, ASTOR, ENKAI, TAVHL. Companies standing out with steady fund inflows over the past week were SISE, AEFES, ULKER, ENTRA, DOAS, KMPUR, TABGD. From a technical perspective, the 11,900 / 12,000 area can be monitored as the main support zone in the BIST 100 index, with 12,040 as interim support. Resistances, on the other hand, are at the 12,300 / 12,330 and 12,400 / 12,530 areas. On today's agenda, the August current account data will be monitored domestically; we expect a surplus of +USD 4.4 billion, while the market expectation is +USD 3.8 billion. Our year-end current account deficit forecast, at USD 54 billion, points to 3% of GDP. Turkey's 5-year CDS premium starts the day at 243 basis points.