Turkey Wake-up call: Macro, Political and Equity News, 1st July

BIST managed to eke out a 0.14% gain yesterday despite the weakness in European and American peers, ending its 3-day losing streak. Banking index was also up 0.14%, precisely matching that of the headline index as the strength in YKBNK and ISCTR balanced out the losses in HALKB and VAKBN. SISE, EREGL, EKGYO, CIMSA, AEFES, GUBRF, AKSA, and OYAKC stood out among the non-bank gainers for the day while ENKAI, TCELL, TTKOM, TURSG, ECILC, TKFEN, VESTL, AGHOL, and HEKTS topped the decliners in the BIST100 space. Coming to the start of the new month, our local macro agenda involves June'22 PMI that will be announced at 10AM local time. The index had remained unchanged on a sequential basis at 49.2 in May in its third consecutive print below the 50 no-change mark after a ten-month expansion streak. Separately, Istanbul Chamber of Commerce will reveal its June'22 inflation numbers for metropolitan Istanbul at noon local time. BIST seems headed for a downtick start given the ongoing sour sentiment in global markets. U.S. futures are down c.0.9% in early trades as they more than reverse the 0.4-0.5% overnight gains after the hour we left and Asian bourses are almost all trading in the red.