Daily Bulletin

Good morning. Concerns that U.S.-Iran tensions could escalate again soon and regional developments are pulling oil prices back to peak levels. Brent crude oil prices stand at USD 113/barrel in the October contracts and at USD 110/barrel in the active November contracts. Despite rising oil prices, the loss of momentum in AI-focused business models and concerns about a slowdown in economic activity are causing expectations of a Fed rate hike in December to be pushed back to 2027. The selling on Wall Street, meanwhile, is leading to inflows into U.S. Treasuries on safe-haven demand and a decline in yields. Following yesterday's selling in global equity markets, U.S. and European futures and Asian markets are also generally under selling pressure this morning. In Borsa Istanbul, together with fund liquidations and selling for ratio adjustment purposes, the pullback towards the 10,500 / 11,000 area, which we had foreseen below 11,900 and have been sharing for some time, continues. While the BIST 100 Index fell 3.1% to 11,220 points yesterday, the companies contributing to the index were CVKMD, AKCNS, ULKER, AKFYE, ENTRA, while those with a negative impact on the index were BIMAS, ASELS, AKBNK, TUPRS, EREGL. Companies standing out with steady fund inflows over the past week were FROTO, ENKAI, SELEC, EFOR, CVKMD, AKFYE, ENTRA. In potential rebounds, 11,280, 11,360 and 11,550 can be monitored as resistances. On today's agenda, the CBT sectoral inflation expectations survey will be followed domestically, while manufacturing, services and composite PMI data in Europe and the U.S. will be followed abroad. Looking at inflation expectations domestically, for the 12-month period households expect 45.6%, the real sector 32.5% and market participants 23.7%. PMI data are above the 50 threshold in all regions, but declines compared to the previous month are expected. Turkey's 5-year CDS premium starts the day at 258 basis points.