What matters on Wednesday, July 6

We apologize for delay due to a technical issue. The markets have entered a cycle of recession fear. Although these concerns have been priced for a while, the damage that will be created by the recession is being pondered. The possibility that fluctuations in energy and raw material costs may cause economic shocks and the expectation for a liquidity squeeze are the main factors increasing stress in the markets. Here is an overview of pricings that led to fluctuations in the markets yesterday:

>> The USD index rose to 106.78 during the day, hitting a 20-year high.

>> The price of WTI crude oil fell below USD 100 per barrel for the first time since May 11. The price of WTI declined by 9.0% to USD 99 per barrel.

>> Brent crude, meanwhile, decreased by 11.0% to USD 102 per barrel.

>> Spot gold fell by over 2.0% below USD 1,763 per ounce. The yellow metal hit a 6-month low.

>> Silver prices decreased by more than 2.0% to below USD 20 per ounce.

>> EUR/USD tested a 20-year low after it declined by 1.75% to 1.0235.

>> Losses in European stock exchanges reached 3.0%.

>> USD/TRY rose to 17.06 with an increase of over 1.0% during the day.

>> EUR/TRY declined by 1.0% to 17.34.

>> Borsa Istanbul’s BIST 100 Index lost 1.4% to close yesterday at 2,371 points.

>> The U.S. stock exchange experienced losses. However, technology stocks gained strength.

The Turkish Grain Board (TMO) made a tender on the acquisition of 18,000 tons of raw sunflower seed oil just before the sunflower harvest. The two companies that won the tender bought the sunflower seed oil for USD 1,489 per ton. The purchase price was around USD 90 higher than the price on the international market. The institution, meanwhile, has also set the purchase price of red lentils at TRY 14,000 per ton.

Erdal Bahcivan, the Chairman of the Istanbul Chamber of Industry (ISO) said serious problems have been experienced in the sourcing of loans from Turkish Eximbank, which is the most important financial support item for exporting manufacturers. “Despite the goodwill of Turkish Eximbank, these external issues also create problems for the management of the bank. We observe that the latest implementations by the Banking Regulation and Supervision Agency (BDDK) caused by Central Bank-driven problems and ‘gangrened’ developments have started to create serious problems for our exporting manufacturers in accessing qualified finance,” Bahcivan added.

On the foreign policy side, Turkey and Italy will deepen cooperation in the defense industry, according to President Recep Tayyip Erdogan. Speaking at a news conference alongside Italian Prime Minister Mario Draghi, Erdogan said Ankara and Rome are willing to sign an agreement as soon as possible on the SAMP/T air defense system project. Ahead of the news conference, Turkey and Italy signed nine cooperation agreements in several areas including defense, trade, diplomacy, and development. The two leaders also discussed Turkey-EU relations. 


No important data will be released in the country.


>> The Consumer Price Index (CPI)-based real effective exchange rate (REER) dropped by 4.01% from 55.56 points to 53.33 points in June, compared to the previous month, according to the Central Bank.

>> The FinTech company Papara has become the full owner of Yuvarla, which provides financial resources to NGOs. 

>> The book-building by packaging company KoroplastTemizlik Ambalaj Urunleri Sanayi ve Dis Ticaret AS will be organized on July 20-21-21 at a fixed price of TRY 4.68.


>> The ‘noteworthy’ statement

Our Eco Analysis Columnist Alaattin Aktas analyses the recent decision by the BDDK, which banned commercial TRY loans to independently audited companies holding foreign exchange corresponding to more than TRY 15m in cash. 

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