Lower oil prices, rate-cut expectations boost outlook for Turkish stocks
Gamze Bal-ISTANBUL
Falling oil prices and improving inflation expectations in Türkiye have increased optimism that the country’s stock market could recover in the second half of the year.
Market experts said a recovery led by the banking, holding, aviation, telecommunications and mining sectors could emerge if geopolitical tensions do not escalate and domestic inflation and interest rates continue to decline.
Although tensions in the Middle East have eased, elevated oil prices over the past several months have contributed to inflationary pressures, prompting central banks to maintain tight monetary policies and weighing on stock markets. In Türkiye, expectations for interest rate cuts were postponed because of the inflationary effects of the conflict involving Iran, while monetary measures pushed funding costs above the policy rate of 37 percent.
