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

BIST took a 2.46% dive yesterday as continued selling pressure in banks spread onto some key non-financials in latter parts of the session. BIST100 index had a positive open and spent the bulk of the day in positive territory around the 119k mark until 4:30PM. Selling pressure intensified after this hour in sync with the weakness in international peers and the benchmark index lost almost 3k points until the close. Banks were again underperforming with the 2.74% loss in their sector index. TCELL, EKGYO, ENKAI, TTKOM, MPARK, TKFEN, SOKM, KOZAL, AKSA, YATAS, KRDMD, and cement stocks were among the hardest-hit non-banks while aviation stocks, Sisecam Group names, OTKAR, EREGL, SAHOL, and ARCLK topped the short list of gainers. Coming to this morning, our local macro agenda involves unemployment statistics for April'20 to be released at 10AM local time. Helped by the drop in labour participation rate to a 6-year low of 48.4%, headline unemployment had inched down 0.4pp from a month ago to 13.2% in March while remaining nicely below the 14.1% level for the same month of 2019. BIST is off to a slight negative open given the weaker sentiment abroad. Asian markets are almost all trading in the red and U.S. futures are down c.0.8% in reversal of their 0.5-1.0% overnight gains after the hour we left.