Turkey Wake-up call: Macro, Political and Equity News, 7th December

BIST closed precisely where it closed the previous day on Friday and booked a 0.16% gain for the whole week. Some excitement in early going fizzled out soon and BIST100 zig-zagged around the no-change line for most of the day. Banks underperformed with the 1.25% drop in their sector index with TSKB and YKBNK lagging peers for the second day in a row. PETKM, FROTO, TTRAK, DOAS, TTKOM, DOHOL, SASA, and YATAS topped the non-bank gainers while SELEC, KRDMD, EKGYO, OTKAR, and cement producers were among the weakest names. Today, our local macro agenda involves Treasury's cash budget balance for November'20 to be disclosed at 5:30PM local time. Separately, Treasury will reissue 2-year and 5-year fixed-coupon bonds in its double domestic borrowing auctions today. Will hold two more auctions tomorrow ahead of this week's TL5.35bn redemption. BIST seems off to a sideways open with a negative bias amid mixed signals from global markets and a small retreat in lira (USDTRY at 7.8140 vs 7.7882 at Friday's closing bell). U.S. futures are down 0.25% in early trades in reversal of most of the 0.4-0.5% overnight gains after we left on Friday while Asian markets are cruising in different directions.