Istanbul stock exchange opens slightly lower, while euro nears 40 mark

The Istanbul stock exchange, Borsa Istanbul, opened Tuesday with a slight decline, as the benchmark BIST 100 index started the day at 10,421.64 points, down 0.01% or 0.60 points from the previous close, amid prevailing selling pressure in global markets driven by rising U.S. trade tensions and mounting recession concerns.

Losses accelerated as the index continued its downward trend, dropping to 10,385.12 points, marking a 0.36% decline.

At the opening, the banking index gained 0.29%, while the holding index remained flat. Among sector indices, communication recorded the highest gain at 0.87%, whereas forestry, paper, and printing suffered the steepest loss, declining 1.68%.

On Monday, Borsa Istanbul followed a sell-off trend, with the BIST 100 index closing at 10,422.24 points, down 0.81% for the day.

Meanwhile, U.S. stock markets experienced one of their most significant sell-offs in recent times, with the tech-heavy Nasdaq plunging more than 4%, marking its biggest single-day drop since 2022.

Euro nears historic 40-level against Turkish lira

Currency markets also showed heightened volatility on Tuesday, particularly in the EUR/TRY exchange rate, which hit an all-time high. According to investing.com, the Euro/Turkish lira exchange rate reached 39.8681, posting a 0.75% daily gain.

The weakening confidence in the U.S. dollar is attributed to the uncertainty surrounding U.S. policies under the new administration, which has raised concerns in political, economic, trade, and security domains worldwide.

As a result, investors are increasingly shifting toward the Euro, the world’s second-largest reserve currency.

Meanwhile, the U.S. dollar slightly appreciated to 36.5769, up 0.11%, while the British pound (GBP/TRY) rose 0.31% to 47.2238.