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

BIST added 0.29% on Friday after spending most of the day in positive territory except for a short-lived sell-off around 4:30PM. Banks fell-behind with the 0.11% loss in their sector gauge after 6 days of outperformance relative to the headline index. FROTO, EKGYO, MAVI, INDES, ARCLK, and ISGYO led the non-bank gainers while BAGFS, YATAS, MPARK, VESTL, KOZAL, and TURSG stood out among weak spots. Coming to this morning, our local macro agenda involves April'21 Balance of Payments data due at 10AM local time. Bloomberg survey puts the monthly CA deficit at USD2.20bn vs the USD5.30bn deficit recorded for the same month of 2020. On the political front, President Erdogan and his American counterpart Joe Biden are expected to meet at around 6PM Turkish time on the sidelines of the NATO summit in Brussels in their first face-to-face meeting after Biden was elected as president and the White House allocated a 1.5-hour slot for the meeting according to sources. BIST seems off to a slight positive open given prevailing optimism in global equity markets. U.S. futures are up about 0.1% this morning on top of 0.2-0.3% overnight gains after the hour we left on Friday and Asian equities are mostly trading in the green. Lira is a tad weaker though, with the USDTRY pair at 8.3840 vs 8.3501 at Friday's closing bell.