President Recep Tayyip Erdogan met with US President Donald Trump, who came to Ankara for the 36th NATO Summit of Heads of State and Government, at the Presidential Complex.
After the meeting, Erdogan responded to press questions, saying, "The F-35 issue is not new for us. We discussed it with the US before. We received promises for five aircraft. Mr. Trump also made a separate promise to us on this matter. Now, I know that in the talks we will hold at the Leaders' Summit, we are positively verifying the future promise we previously received from them regarding the F-35."
US President Trump said, "Turkey has become a very strong country militarily under your leadership. I can say that we can lift the sanctions."
Tensions rise in the Middle East, oil surges
Meanwhile, the renewed sounds of explosions in the Middle East increased geopolitical risk perception in the markets. Mutual military moves continued in the region shortly before US and Iranian delegations were set to meet for a new round of talks.
The US Central Command (CENTCOM) announced on social media that more than 80 targets belonging to Iran were struck. The statement emphasized that forces remain deployed and ready.
Meanwhile, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the US attacks violated the memorandum of understanding, and added, "No result can be achieved through bullying and pressure."
With the impact of rising tensions in the region, the price of Brent crude oil per barrel rose by 5.2% to $75.8, recording its fastest daily gain since April 29. In the new trading day, it is trading with a 0.2% increase at $75.9.
Rate hike expectations strengthen ahead of Fed minutes
The impact of rising oil prices on the inflation outlook brought forward expectations regarding the Fed's monetary policy. After the attacks, the probability of a rate hike in September in money markets rose to 77%; a signal emerged that another increase could take place in 2027.
With these developments, investors focused on the Federal Open Market Committee (FOMC) meeting minutes to be released today. Analysts noted that possible clues in the minutes could provide more clarity on monetary policy, but could also increase volatility.
DeepSeek pressure on the chip sector
News flow that Chinese startup DeepSeek developed its own AI chip increased pressure on US manufacturers. Following this, Marvell Technology shares fell 7.5%, Lam Research 6.9%, AMD and Applied Materials 6.5%, Micron Technology 4.7%, Qualcomm 1.9%, and Broadcom approximately 1%.
The S&P 500 index fell 0.45%, the Nasdaq index 1.16%, and the Dow Jones index 0.25%. The US foreign trade deficit increased by 42.2% month-on-month in May to $77.6 billion, the highest level since March 2025. Short-term consumer inflation expectations also rose to 3.7% in June.
Bond yields and dollar rise, gold falls
The US 10-year bond yield rose by about 10 basis points to 4.56%, and stabilized at 4.55% in the new trading day. The dollar index rose by 0.3% to 101.2 yesterday, and is at 101.1 today, down 0.1%.
With the strengthening dollar and rising bond yields, the price of an ounce of gold fell 1.4% yesterday to $4,106, and is finding buyers at $4,125 in the new day, up 0.5%.
European stock markets negative except UK
European stock markets saw a selling trend yesterday except in the UK. Demand for energy stocks supported markets in the UK, while the resignation of far-right Reform UK Party leader Nigel Farage from his parliamentary seat due to a donation reporting crisis was also on the agenda. Meanwhile, the European Commission prepared an action plan against AI-related cyberattack risks.
In Germany, industrial production rose by 0.9% month-on-month in May, exceeding forecasts, while the FTSE 100 rose 0.1%; the CAC 40 fell 0.51%, the DAX 40 1.37%, and the FTSE MIB 30 0.95%.
Mixed trend in Asia, BIST 100 rises
On the Asian side, a mixed picture emerged. DeepSeek's chip move supported Chinese and Hong Kong markets, while SMIC shares rose 7.2%. Japan's current account balance posted a surplus of about $24.45 billion in May. While the Nikkei 225 fell 0.66% and the Kospi 4.35%, the Shanghai Composite rose 0.3% and the Hang Seng 2.46%.
On Borsa Istanbul, the BIST 100 index closed the day at 14,497.37 points, up 0.50%. Analysts stated that besides the news flow from the NATO Summit, the domestic data agenda will be calm, while abroad the Fed meeting minutes and US wholesale inventories will be monitored. Technically, the BIST 100 sees resistance at 14,600 and 14,700 points, and support at 14,400 and 14,300 points.
