Macro and Politics

*TURKSTAT will release June Economic Confidence Index @ 10:00 local time. The Economic Confidence Index remained virtually unchanged in May, inching up by just 0.1 points from 96.6 to 96.7. As per the sub-components of May data: The consumer confidence index rose by 1.1% on a monthly basis to 84.8, while the real sector confidence index declined by 2.2% to 98.6. Moreover, the services confidence index climbed 0.9% to 110.5, the retail trade confidence index increased by 0.6% to 111.2, and the construction confidence index recorded a notable gain of 3.9%, reaching 88.4.

*During the week of June 13–20, foreign investors were net sellers of USD109.2mn in the equity market, while the bond market (excluding repo transactions) saw a net foreign inflow of USD685.6mn. As a result, the foreigners’ share in total bond stock increased from 5.1% to 5.5% within the mentioned week. Moreover, residents’ FX deposits (excluding gold accounts and adjusted for the EUR/USD parity effect) declined by USD682mn, while their total FX deposits (including gold, price adjusted) fell by USD477mn. Over the same period, the CBT’s net FX reserves decreased by USD6.7nm to USD48.1bn, while gross FX reserves declined by USD3.6bn to USD155.bn. Lastly, net reserves excluding swaps slid by USD5.3bn to USD30.1bn.