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

BIST added another 0.89% yesterday in its continued rally as banks took over the driver's seat this time. Benchmark BIST100 twice slipped to negative territory during the day, but it swiftly rebounded in both cases and closed just shy of its new all-time-high. Banks gained 3.13% on average with AKBNK and the two state lenders spearheading the move. BIMAS, TAVHL, PETKM, ASELS, TRGYO, MPARK, and AKSEN topped the non-bank gainers for the day while automotive stocks, ENKAI, TTKOM, ISDMR, and KORDS were some of the fewer weak spots in the BIST100 space. Today, our local macro agenda showcases the Treasury's cash budget balance for November'21 to be disclosed at 5:30PM local time. We will also keep an eye on Treasury's reissues of 5-year fixed-rate bonds and 7-year FRNs in double domestic auctions while its total redemption for this week stands at only TL2.06bn. We predict another positive open for the BIST given the supportive sentiment abroad and a weaker lira (USDTRY around the 13.81 mark vs 13.7614 at yesterday's closing bell) that the market has been cherishing for industrial stocks. U.S. futures are up over 0.3% on top of the 0.5-0.7% overnight gains after we left and Asian stock markets are all trading in the green.