Morning Note /
Turkey

Turkey: We expect a slight positive opening

  • Fed minutes were a tad more hawkish than expected

  • There is positive news from the US Foreign Secretary’s office

  • Congress says that Turkey has paid enough of a price in the spat about S-400s

Batuhan Ozsahin
ATA Invest
7 April 2022
Published by

After a 16% m/m rally, the index naturally is losing a bit of its momentum and the decline of risk appetite in global markets is also not helping. FED minutes were a tad more hawkish than expected and the last step of quantitative tightening will start in May with expected paring of USD 1 trillion assets per annum.

The only other QT we saw was back in 2013 and it did not bode well for EMs, but for Turkey’s case the involvement of foreign investors in financial assets was at a record high and currently it is at an all-time low. Hence the volatility in US markets will have less of an impact than previous years.

There is positive news from the US Foreign Secretary’s office, as a report submitted to Congress says that Turkey has paid enough of a price in the spat about S-400s and its request to buy 40 new generation F-16s and 80 modernization kits for the existing F-16 fleet should be reviewed in the light of recent developments in the region.

This is a very rare development and in days like this usually Halkbank and Aselsan give a positive bounce back as they have suffered from poor US-Turkey relations and the ongoing Halkbank case in the US. We expect a slight positive opening on the back of this development.

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