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

BIST retreated 0.37% yesterday in the second consecutive day of small losses. Index quickly turned south after a slight positive start and spent almost all of the day in the negative territory. Banks underperformed with a 0.83% drop in their sector index. EKGYO, BIZIM, SOKM, and Koza Group stocks topped the gainers while KCHOL, PGSUS, TOASO, TCELL, SISE, AKGRT, AYGAZ, AEFES, and TTKOM were among the weakest blue-chips. Today, our macro agenda showcases unemployment statistics for March'20 to be released at 10AM local time. Headline unemployment had inched down 0.2pp from a month ago to 13.6% in February while remaining nicely below the 14.7% level for the same month of 2019. We foresee a sideways start with a positive bias for the BIST given some gains in lira (USDTRY at 6.7856 vs 6.7942 at yesterday's closing bell) and amid mixed signals from peer equity markets. U.S. futures are up over 0.5% in early trades in reversal of their 0.2-0.5% overnight declines after the hour we left while Asian equity benchmarks are cruising in different directions.