Mehmet Şimşek was appointed last night as the finance minister of Turkey, which is bullish for the market as he is a figure well-known and trusted by foreign investors. He recently spoke in favor of returning to a 'rational' economic policy, which I interpret as an orthodox economic policy after some years of 'Erdonomic' policy.
This would decrease the uncertainty in Turkish economic policy, and more credibility and consistency would mean increased confidence from both foreign and domestic investors, especially foreign investors though. Therefore I expect tomorrow's top performers to be stocks that foreigners most love such as Turkish Airlines, Eregli Steel, Sisecam, Koc Holdings, etc.
The demand for the Turkish lira would also increase because the interest rate and the Turkish lira would rise significantly if the TCMB returns to a normal economic policy, and raises rates to counter inflation. This would increase the lira's international value.
Soaring unemployment could be the cost of this though. In economics, there is a short-term trade-off between inflation and unemployment. This means they move in opposite directions in the short term, so decreasing inflation would mean the unemployment rate which is already 11%, would increase further.
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