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4 Jun 2013
Flash: Crisis or cautionary tale in Turkey? – Deutsche Bank
FXstreet.com (Barcelona) - The weaker dollar helped some EM assets find a floor, including the South African rand, which rallied 2.7% against the greenback. However, it was a different story for Turkish equities where the fifth day of protests brought a 10.5% plunge in the Istanbul National 100 index.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “What started as a small environmental protest has quickly escalated to nationwide protests with government data showing approximately 1,500 arrests in Ankara, 300 in Izmir, and another 370 in the southern town of Adana, according to the Guardian.”
US secretary of state John Kerry urged a full investigation into reports of excessive use of force by Turkish police. Yesterday's stock market performance was also the worst one-day performance for Turkish equities in more than 10 years. Over the last week, the index has lost 15% and 10yr bond yields are 75bp higher, in a poignant reminder of the impact of geopolitical risks.
According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “What started as a small environmental protest has quickly escalated to nationwide protests with government data showing approximately 1,500 arrests in Ankara, 300 in Izmir, and another 370 in the southern town of Adana, according to the Guardian.”
US secretary of state John Kerry urged a full investigation into reports of excessive use of force by Turkish police. Yesterday's stock market performance was also the worst one-day performance for Turkish equities in more than 10 years. Over the last week, the index has lost 15% and 10yr bond yields are 75bp higher, in a poignant reminder of the impact of geopolitical risks.