Turkey - Factors to watch on July 8

ISTANBUL, July 8 (Reuters) - Here are news, reports and events that may affect Turkish financial markets on Tuesday.

The lira TRYTOM=D3 traded at 39.9925 against the U.S. dollar at 0423 GMT, flat compared to the close on Monday when it weakened to 40 against the greenback.

The main BIST 100 share index .XU100 closed 1.64% lower at 10.107.68 points on Monday.

GLOBAL MARKETS

Stock markets in Asia took in stride the latest twist in U.S. President Donald Trump's tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated. Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the United States, while also postponing their implementation to August 1.

OPPOSITION CRACKDOWN

The interior ministry said on Monday it suspended Antalya Mayor Muhittin Bocek from duty after he was arrested at the weekend on bribery charges, marking the latest escalation in an aggressive legal crackdown on the main opposition CHP, which denies the array of charges.

MARKET REACTION

In response to the dozens more detentions at the weekend, including that of three more CHP mayors in the south, Turkey's international bonds and lira currency weakened on Monday and the cost of insuring government debt against default rose. Turkish assets are sensitive to domestic politics, with foreign investors prepared to ditch them if the latest political developments impact the inflation-fighting economic programme.

FOREIGN REACTION

The French foreign ministry expressed "deep concern" on Monday after the latest round of Turkish opposition detentions, saying the local elected officials have a right to a fair trial. Ankara rejected the statement as "interference in the ongoing judicial processes in our country".

ERDOGAN

President Tayyip Erdogan will attend a credential-presentation ceremony in Ankara (1100 GMT) then receive a series of ambassadors including from Ukraine.

CHP LEADER

Republican People's Party (CHP) leader Ozgur Ozel will address his party's parliamentary group meeting. (1030 GMT)

PKK DISARMAMENT

The pro-Kurdish DEM party will hold its parliamentary group meeting. On Monday, it said a party delegation had met Erdogan on Monday to discuss the disarmament process of Kurdistan Workers Party (PKK) militants and had conveyed its recommendations on the next potential steps.

BOND AUCTIONS

The finance ministry will hold two bond auctions.

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