Turkey Wake-up call: Macro, Political and Equity News, 4th August

BIST climbed 0.65% yesterday, extending its winning streak to the fifth day. Benchmark BIST100 spent most of the in positive territory apart from a short-lived weakness in early morning. Banks led by GARAN spearheaded the market with the 1.87% jump in their sector index. TOASO, OTKAR, EREGL, ENJSA, BIMAS, and DEVA topped the non-bank gainers while aviation stocks, HEKTS, VESTL, PETKM, and VERUS were some of the weak spots. Today, on the macro front, Central Bank will release the July'21 real effective FX rate at 2:30PM local time. The CPI-based index is expected to rebound from its all-time-low of 59.77 for previous month given ~2.9% appreciation of lira vs the currency basket during the month along with the 1.80% headline CPI print for July. BIST is off to a positive start given the better sentiment abroad. U.S. futures are down a few points but holding onto the bulk of the 0.7-0.8% overnight gains after the hour we left. Asian markets outside of Japan are almost all trading in the green.