Sectoral confidence indices declined in Turkey and fund withholding tax claim is on the agenda
While sectoral confidence indices fell in Turkey in August, the claim that a 10 percent withholding tax will be applied to money market funds was monitored in the markets.
While confidence indices for the construction, retail trade, and service sectors declined in Turkey in August, it was claimed that the Ministry of Treasury and Finance is preparing to introduce a 10 percent withholding tax on money market funds. In global markets, the US's new sanctions against Iran and diplomatic contacts between Pakistan and Iran were monitored.
Changes in Sectoral Confidence Indices
According to the August data announced by TUIK, a decrease was recorded in sectoral confidence indices. The confidence index in the construction sector fell to 83.1.
Retail and Service Sectors
In August, the confidence index in the retail trade sector fell to 110.1, while the index in the service sector dropped to 111.9. These rates materialized slightly below July.
Withholding Tax Claim on Money Market Funds
In the news flow, it was claimed that the Turkish Ministry of Treasury and Finance has completed its preliminary work regarding the taxation of hot money flowing into money market funds. A 10 percent withholding tax is planned to be applied to the gains obtained by domestic and foreign institutional investors from these funds.
New US Sanctions Against Iran
The effects of the new sanction package named Operation Economic Exclusion, announced by US Treasury Secretary Scott Bessent, were monitored. Targeting Iran as well as supporting individuals, institutions, and governments, the package also covered Chinese companies.
Sanction Reactions from China and Iran
The Chinese Ministry of Foreign Affairs announced that retaliation could be made against the US, while Iranian Economy Minister Ali Madenizade stated that his country is fully prepared against new sanctions.
Diplomatic Developments and Oil Prices
It was reported that Pakistan and Iran have made significant progress in talks aimed at ending the US-Israel war. Following these developments, the barrel price of Brent crude oil fell below 86 dollars.
Current Pricing in Markets
While the spot gold ounce price moved sideways at 4,652.39 dollars, exchange rates are trading at 48.10 for USD/TRY, 56.17 for EUR/TRY, and 65.65 for GBP/TRY.