Military tensions have recently restarted in South Eastern Turkey between the Turkish Army and terrorist group PKK. A new cross-boarder operation is currently in talks which could increase geopolitical risks.
On the economic front, trade deficit continues to widen whereas inflation figures came in at better levels than expected (YoY CPI at 11.1%) highlighting the disinflation process is in progress.
Nonetheless, markets are down and volatile following global trends with the ISE-100 index falling by 14% in the last 10 days, yields on benchmark bond increasing to 20% level and USD/TRY exchange rare hitting 1.4 level.
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