Turkey Wake-up call: Macro, Political and Equity News, 11th September

BIST inched down 0.06% yesterday after a day of ups and downs. After some weakness before noontime, index turned north on recirculating local chatter about a new international swap deal as well as fresh gas finds in Turkey's ongoing offshore drillings. The move was also supported by the gains in lira and BIST100 climbed to a daily peak of 1,106 in late afternoon, but the gains had all fizzled out by the close. Banks fared better, gaining 1.10% on average with HALKB and ISCTR leading the pack. ARCLK, CCOLA, Sisecam Group names, SKBNK, ALBRK, ALKIM, MAVI, NTHOL, and SELEC topped the gainers while previous day's best performers like PETKM, TUPRS, AKSEN, ODAS, ZOREN, IPEKE, KRDMD, GLYHO, and AYGAZ stood out among yesterday's weak spots. Today, our local macro agenda showcases July'20 Balance of Payments data due at 10AM local time. Bloomberg survey puts the monthly CA deficit at USD1.90bn vs the USD2.00bn surplus recorded for the same month of 2019. We anticipate a slight negative open for the BIST given the sharp overnight losses in American indices and some slide in lira (USDTRY at 7.4587 vs 7.4432 at yesterday's closing bell). U.S. futures are up c.0.7% in early trades in partial recovery of their 1.4-1.7% overnight losses after the hour we left while Asian markets present a mixed picture.