Turkey Wake-up call: Macro, Political and Equity News, 1st December

BIST closed almost unchanged after a volatile day of ups and downs yesterday. Banks were relatively softer as their sector index lost 0.43% amid weakness in the two state lenders. TOASO, TCELL, HEKTS, KORDS, KOZAL, KOZAA, DOAS, MPARK, and KARSN topped the gainers while ASELS, TUPRS, CCOLA, TAVHL, PGSUS, KRDMD, SOKM, SELEC, and DEVA were some of the weakest non-banks. Coming to the start of the new month, our local macro agenda involves November'21 PMI that will be announced at 10AM local time. The index had retreated 2.7% on a sequential basis to a five-month low of 51.2 in October while still extending its recovery to the fifth consecutive month after the loosening of pandemic restrictions. Separately, Istanbul Chamber of Commerce will reveal its November'21 inflation numbers for metropolitan Istanbul at noon local time. BIST seems off to a flattish start as last night's rout in global markets after FED chair Powell's hawkish comments is yielding to a more positive mood this morning. U.S. futures are up c.0.9% in early trades in partial recovery of their 1.3-1.5% overnight losses after we left while Asian markets are mostly trading in the green. Lira is weaker with the USDTRY pair around the 13.59 mark vs 13.1163 at yesterday's closing bell, but off the overnight high of over 13.95.