Turkey Wake-up call: Macro, Political and Equity News, 10th August

BIST lost 0.35% yesterday, putting an end to its 4-day winning streak with a small retreat. Banks dropped 0.62% on average due to the weakness in ISCTR in particular while other major private lenders closed higher for the day. TUPRS, ENKAI, ENJSA, ZOREN, CIMSA, GLYHO, INDES, and AYDEM topped the gainers among the BIST100 constituents while TTKOM, TCELL, VESTL, SISE, SASA, HEKTS, CCOLA, AKSA, and SNGYO were some of the weakest non-banks. Today, our local macro agenda showcases unemployment statistics for June'22 to be released at 10AM local time. Seasonally-adjusted unemployment had improved 0.3pp from a month ago to 10.9% in May as the 358k monthly increase in the number of employed surpassed the 302k climb in the labour force (labour force participation was sequentially up 0.4pp to 53.6%). Separately, Treasury will sell 2-year USD-denominated fixed-rate bonds in its single domestic borrowing action for today. Its domestic redemptions for the week total TL56.92bn and the Treasury has already raised TL26.41bn in its three auctions so far this week. BIST seems off to a downtick open given similar moves in global bourses. U.S. futures are down c.0.2% in early trades and Asian equity indices are almost all trading in the red.