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

BIST added 0.44% yesterday as the strength in key industrial names managed to compensate for the profit-taking in banks. Banking sector index was down 0.90% amid selling pressure on GARAN and AKBNK particularly during the last hour of the session while YKBNK was strong on the back of the Unicredit-KCHOL deal. TUPRS, PETKM, SISE, FROTO, TOASO, CCOLA, PGSUS, SASA, and ODAS led the non-bank gainers while BIMAS, TCELL, YATAS, ALKIM, AKSEN, HEKTS, and ALARK stood out as weaker names among BIST100 constituents. Today, our local macro agenda showcases unemployment statistics for September'21 to be released at 10AM local time. Seasonally-adjusted unemployment had inched up 0.1pp from a month ago to a 12.1% in August as the small 4k monthly decline in labour force (labour force participation was sequentially down 0.1pp to 51.2%) was outpaced by the 14k decrease in the number of employed. We predict a slight negative open for the BIST as global equity markets are in retreat on rising inflation concerns. Lira is also softer with the USDTRY pair testing 9.75-9.77 range vs 9.7264 at yesterday's closing bell. S&P futures are down 0.3% in early trades and Asian bourses are all trading in the red.