Turkey Wake up call: Macro, Political and Equity News, 14th July

BIST jumped 3.13% yesterday as the upbeat mood in global markets fuelled a rally in Turkish stocks as well. BIST100 index had a positive start above the 116k mark and followed a path of gradual ascent to a close at its daily peak. Banking index added 2.42% with YKBNK and VAKBN outperforming vs AKBNK and ISCTR lagging. EKGYO, AKGRT, TOASO, EREGL, BIMAS, SOKM, PETKM, ARCLK, TKFEN, and energy stocks topped the gainers for the day while KARSN was the sole index constituent to close in the red. Today, our macro agenda showcases TurkStat's residential sales data for June’20 due at 10AM local time. Home sales had taken a 44.6% yoy dive in May to 50.9k units despite the 23.9% jump in mortgage-backed transactions as the coronavirus restrictions had weighed heavily on the activity. May data had carried the cumulative ytd sales to 435k units, down a mild 2.2% from the same period of 2019 thanks to the 118.2% surge in mortgage-backed sales on advantageous interest rates. We are looking at a negative open for the BIST as the sentiment abroad has swung back into negative on global growth concerns. U.S. futures are up 0.2% in early trades in marginal recovery of their 1.5-2.2% overnight losses after the time left and Asian equity benchmarks are all trading in the red.