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

BIST jumped 2.36% yesterday as the bulls returned to the scene after a day of breather. After an uptick open that marked the lowest point of the day, benchmark BIST100 quickly jumped to the 117.5-118.0k range where it spent the bulk of the day. A fresh wave of buying in the last 30 minutes added another 500 points to a close just a few points shy of the daily peak. Banks led by AKBNK added 2.35% on average, in sync with the broader market. BIMAS, MGROS, SOKM, TKFEN, EKGYO, CCOLA, SISE, and cement stocks led the non-bank gainers while THYAO, TAVHL, MAVI, BIZIM, and DOAS were among the rare decliners. Today, our macro agenda involves the Treasury's cash budget balance for June'20 to be disclosed at 5:30PM local time. Separately, Treasury will reissue 5-year CPI linkers and separately offer 2-year sukuk bonds via a direct placement. Domestic redemption for the week is a hefty TL16.47bn while the Treasury has already raised TL8.11bn in the double auctions held yesterday. BIST seems off to a downtick open given the momentum in many peer markets yielding to profit-taking. U.S. futures are down 0.2% in early trades and Asian markets outside of China are mostly trading with slight losses for the day.