Turkey Wake-up call: Macro, Political and Equity News, 22nd January

BIST retreated 1.13% yesterday as the afternoon sell-off along with European peers erased earlier gains. BIST100 index opened on an uptick and floated in a very tight range in positive ground until around 3:30PM when sellers took the driver's seat. The benchmark gradually descended to close at its daily low. Banks fared better with the 0.18% drop in their sector index as the MPC decision to keep the policy rate unchanged supported their outlook. Cement producers, energy companies, KORDS, EKGYO, NTHOL, SELEC, and DEVA were among the gainers while EREGL, KRDMD, MGROS, AYGAZ, GUBRF, DOHOL, OTKAR, and AEFES topped the longer list of decliners. Coming to this morning, our macro agenda is muted while S&P has a scheduled review of Turkey's sovereign rating for today and any related announcements are expected to be released after markets close. The agency rates Turkey at B+, four notches below investment grade, with a stable outlook. S&P is broadly expected to affirm Turkey's rating at B+ with Stable outlook while only 1 out of 12 economists surveyed by ForeksTurkey anticipates the rating to be increased by one notch to BB- and another one predicting the outlook to be raised to Positive from Neutral. BIST seems off to a slight negative start given the similar moves in global peers. U.S. futures are down 0.2% in early trades and Asian indices are almost all trading in the red.