Turkey Wake-up call: Macro, Political and Equity News, 6th May

BIST climbed 1.47% yesterday as the strength in some key industrials made up for the weakness in major banking names. While the benchmark index retreated from its intraday peak of 2,491 after 4:30PM, it still managed to resist the selling pressure on U.S. futures and European markets. Banks lost 0.57% on average as they reversed their earlier gains while the two state lenders bucked the slide of their private peers. TUPRS, SISE, THYAO, TAVHL, KOZAL, PETKM, TKFEN, TOASO, and AEFES topped the long list of non-bank gainers while TCELL, KCHOL, EREGL, GWIND, GOZDE, and TURSG were among the fewer decliners in the BIST100 universe. Today, our local macro agenda involves the Central Bank's April'22 real effective FX rate due at 2:30PM local time. The CPI-based index is expected to stage some recovery from the 54.01 mark for previous month given ~1.4% appreciation of lira vs the currency basket along with the 7.25% headline CPI print for April. BIST seems off to a negative open amid continued sour mood in global markets and the resulting pressure on risk assets. U.S. futures are down about 0.1% this morning on top of the 0.5-0.6% overnight losses after we left and Asian bourses outside of Japan are all trading visibly in the red.