Markets Today: Key Developments and Expectations

Market Overview: October 22 Analysis

Today in the markets, a volatile trend is expected due to significant geopolitical developments and economic data. The postponement of the Trump-Putin meeting and uncertainties regarding Ukraine are limiting investors' risk appetite. In this environment, gold prices are returning to the level of $4,130, while silver is trading at $48.8, and Brent oil is close to $62.

ECB President Lagarde's Speech

All eyes in Europe will be on ECB President Christine Lagarde's upcoming speech. The EUR/USD pair is flat at 1.1613. In the Asian markets, Japan's announcement of a large-scale stimulus package has helped ease losses in the Nikkei index.

Expectations for Borsa Istanbul

Borsa Istanbul is expected to start the day flat. The recent rise led by banking stocks has turned into profit-taking due to the latest news flow. This situation may lead to a volatile market outlook for the remainder of the week.

The BIST 100 index is showing a strong performance above the 10,400 level. The breaking of the 10,500 resistance is considered a critical threshold for the potential beginning of a bullish trend. Above this level, resistances at 10,560 and 10,600 are noteworthy, while the support at 10,300 is also significant. The VIOP started the morning session with a 0.06% increase.

Central Bank Meeting and Interest Rate Expectations

Markets are focused on the CBRT meeting scheduled for Thursday. The current interest rate stands at 40.50%. Investors' expectations lean toward a reduction of 100-150 basis points; however, due to high inflation, a cautious approach is being taken. According to the CBRT survey, households' 12-month inflation expectation is at 53%. Additionally, the increase in foreign currency accounts enhances the strength of this perception.

Bond yields are slightly rising, hovering at 40.62%. The dollar/TL is close to 41.97, while the euro/TL appears at around 48.77. The CBRT will announce its Inflation Report on November 7, outlining the targets for 2026.

Stocks with Strong Technical Outlook

In the BIST 100 index, stocks that are priced above the 9, 21, 50, and 200-day exponential moving averages, with a MACD above 0, an RSI below 60, and stochastic and stochastic RSI indicators below 70, are of interest to investors. This information does not constitute investment advice.