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

BIST added another 1.34% yesterday in the ninth consecutive day of its winning streak yesterday. Benchmark BIST100 index tested the 2,050 resistance in late afternoon, but pared back some of its gains during the last 30 minutes. It was again key industrial/services stocks that carried the market higher as banks closed the day almost unchanged. THYAO, EREGL, KRDMD, ASELS, ARCLK, TKFEN, PGSUS, AEFES, and PETKM stood out as the strongest BIST100 constituents while BIMAS, TCELL, CCLA, SOKM, HEKTS, and TRGYO topped the non-bank decliners. Today, our local macro agenda involves the unemployment statistics for October'21 to be released at 10AM local time. Seasonally-adjusted unemployment had declined up 0.3pp from a month ago to 11.5% in September as the 426k monthly increase in the number of employed had exceeded the 356k climb in labour force (labour force participation was sequentially up 0.5pp to 51.7%). Separately, CBT's monthly expectations survey will also be revealed at 10AM. We anticipate a flat open for the BIST as global bourses are posting moderate losses this morning amid worries that omicron virus strain may cripple the rebound in economies. S&P futures are down c.0.4% since the time BIST closed yesterday and Asian equity benchmarks are almost all trading in the red. Lira is flattish with the USDTRY cruising slightly above the 13.80 mark.