Benchmark Equity Index Still Close to Record Highs; Banking Index Tests 9000

Despite sitting 0.4% softer on the day, the Borsa Istanbul equity index is trading within relatively close proximity to all-time highs at 8562, the Oct 03 high, with YTD gains standing at just over 50%. The banking sector index briefly traded to as high as 8979 earlier this morning, falling short of the psychological 9000 handle which acted as firm resistance earlier this month – and a level which has never been breached in TRY terms. USD-adjusted returns of the benchmark index unsurprisingly remain considerably lower, with total USD returns close to flat on the year.

• Earlier this morning, Turkey’s current account recorded a $619m shortfall in August, slightly less than estimates of a smaller $550m deficit but much shallower than the $5.53bln deficit in July.
• There is little else on the docket for the remainder of the week, with the US inflation print tomorrow the next major risk event for global equities.