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

BIST added 0.20% yesterday after another day that was mostly spent in positive territory. Banks gained 0.39% on average, but presented a mixed bag with the two state lenders and YKBNK standing out while GARAN and AKBNK came under selling pressure. THYAO, PETKM, TKFEN, ALARK, SOKM, GWIND, YATAS, and TURSG topped the non-bank gainers while BIMAS, TTKOM, TCELL, FROTO, DOHOL, KRDMD, EREGL, and ZOREN stood out among the decliners. Today, our local macro agenda involves August'22 PMI which will be announced at 10AM local time. The index had declined 2.5% on a sequential basis to 46.9 in July, the lowest since the first wave of the pandemic back in May'20, in its fifth consecutive print below the 50 no-change mark after a ten-month expansion streak. Separately, Istanbul Chamber of Commerce will reveal its August'22 inflation numbers for metropolitan Istanbul at noon. BIST seems off to a slight negative start given the sour sentiment in global markets and new hikes in local electricity and natural-gas tariffs do not bode well for most of the industrial companies either. U.S. futures are down c.0.6% in early trades on top of the 0.5-0.7% overnight losses after we left and Asian bourses are almost all trading in the red.