"10 February Developments You Need to Know Before the Market"

Global Markets Show Cautious Optimism

While risk appetite in the global markets fluctuates, the overall outlook indicates a cautious optimism. In Asia, the strong political landscape following the early elections in Japan and expectations of fiscal expansion are pushing Japan’s Nikkei 225 index to new record highs.

Notable Data from US Markets

In the US, after the recent two-day rise, futures are showing a tendency to take a breather. Macro data, particularly the employment figures delayed due to the federal government shutdown, alongside this week’s retail sales and Consumer Price Index (CPI) figures, are critical for expectations regarding the Fed's interest rate path. Retail sales data will be in focus today, while tomorrow's employment figures will capture investors' attention.

China and Geopolitical Developments

The cautious stance of Chinese regulators towards US bonds and the prominence of gold in reserve preferences has the potential to exert upward pressure on US bond yields in the long term. On the commodity side, oil prices are experiencing volatility due to US-Iran relations and security concerns regarding the Hormuz Strait. In precious metals, investors are acting cautiously ahead of the upcoming critical US data.

Strong Start for Borsa Istanbul

Borsa Istanbul started the week strong, managing to close the BIST 100 index with an increase of over 2%. Particularly, the construction sector and banking stocks provided significant support to the index. The improvement in global risk appetite and the positive atmosphere in Asian markets had a positive impact on Turkish Lira (TL) assets.

Technical Outlook and Investment Strategies

From a technical analysis perspective, the BIST 100 index sustaining above the 13,700 level strengthens the short-term outlook. The 14,000 level is considered an important psychological barrier above. If sustainability is not achieved, short-term fluctuations are expected to continue.

In the macro area, the Inflation Report to be released by the Central Bank of Turkey (CBRT) will guide the markets. If inflation comes in above expectations, it indicates that reaching year-end targets will become more difficult and possible upward revisions in this report are being priced in.

Featured Stocks

• Çan2 Thermal Power Plant (CANTE)
• Pacific Eurasia Logistics (PASEU)
• Yapı ve Kredi Bankası (YKBNK)

In light of these developments, it is crucial for investors to be careful and selective. Markets may seek a clearer direction from the messages coming from the Central Bank.