BİST100 ACCELERATES GAINS AMID RISK APPETITE
After the US Treasury Secretary Steven Mnuchin stated that the US and China had made positive progress, global risk appetite increased. In addition, the news that the US and China will take new measures to reduce the negative effects of trade wars on the economies positively affected the markets. Many indices, especially the US markets, ended the day in a positive region. Mnuchin had also said they are evaluating sanctions over Turkey's purchase of S-400 from Russia. Although there was some tension on the index after this announcement, the general direction trend did not change much. Following this announcement, President Erdoğan announced that they started the opening of free trade negotiations with the USA and alleviated the unease in the markets. Furthermore, the positive impact of the interest rate cut expectation around 275 basis points for the CBRT meeting, which will be held this week, was felt on the BIST100 index. However, it can be said that the negative effects of the interest rate cut-off expectations on the Turkish lira and the increases in the exchange rate weaken the purchasing potential of the index to some extent. On the second trading day of the week, the BIST100 index closed the session with a 0.6 percent increase over the 101,000 level, while the index is very close to the 102.500 critical resistance level. In addition, monetary easing signals from global central banks, as well as increased interest rate cut expectations for the Fed and the ECB, have triggered the buying potential on global indices. On the other hand, British Prime Minister Boris Johnson, who insists on October 31, despite the parliament has rejected no-deal Brexit, said he would not ask for a postponement.
In the technical outlook of the BIST100 index, we think that the index, which has spent the day with buyings will accelerate its gains with 102.500 resistance. However, exceeding the 101.800 level, which we follow as an intermediate resistance point below this level, is important in terms of accelerating the purchase potential. While expansion policies from global central banks have had a positive impact on the indices, the index's settling on the resistance of 104,000 may cause the medium-term outlook to exceed a significant breakpoint. Depending on the possible relaxation scenario of the index, psychological 100.000 support comes to the fore as the first transition point.