Geopolitical Risks Stemming From the Middle East Are Being Closely Monitored

Istanbul's BIST 100 index closed the day up 2.96% at 14,110.14 points, marking its biggest daily gain since June 15 and crossing the 14,000-point threshold. The index rose 405.62 points from the previous close, with total trading volume reaching 257.5 billion Turkish lira. The banking index gained 4.19%, while the holding index rose 0.62%.

Among sector indices, financial leasing and factoring posted the largest gain at 5.30%, while food and beverage saw the biggest decline at 2.43%. Global markets showed a mixed picture after U.S. inflation data for July came in line with expectations, strengthening bets that the Federal Reserve will hold interest rates steady. Geopolitical risks stemming from the Middle East are being closely monitored.

Data released in the U.S. on Wednesday showed the Consumer Price Index (CPI) rose 0.1% month-on-month and 3.4% year-on-year in July, both matching market forecasts. Core CPI, which excludes volatile energy and food prices, increased 0.2% on a monthly basis and 2.5% annually. The BIST 100 outperformed European markets ahead of the Central Bank of Turkey's Inflation Report due Thursday.

Analysts said domestic focus will be on the inflation report, current account balance, and money and banking statistics, while abroad attention will turn to producer price index data from the U.S. and Japan, as well as U.K. growth figures. Technically, analysts noted that 14,200 and 14,300 points serve as resistance levels for the BIST 100, while 14,000 and 13,900 points act as support.