Turkish stocks, lira open lower amid military operation

Borsa Istanbul’s BIST-100 share index lost 1,041.71 points (1.35 percent) at the opening of the morning session, falling to 76,290.90. The banking and holding sectors were down 1.72 percent and 1.33 percent respectively.        

The Turkish Lira also lost value, opening trading at over 2.96 against the U.S. dollar, from 2.9375 at the close of Aug. 23.        

“With the expectation of further hawkish comments from Fed Chair [Janet] Yellen’s speech this week, and increasing geopolitical tension, we expect the BIST to open on a negative note today,” Istanbul-based Şeker Investment said in a client note, as quoted by Anadolu Agency. 

Yellen’s keynote speech is expected to be the main focus of a meeting of global central bankers in Jackson Hole, Wyoming. The meeting, which starts on Aug. 25, has traditionally been used by Fed chiefs as a platform to signal the direction of monetary policy.

Recent hawkish comments from some Fed policymakers, including Vice Chairman Stanley Fischer, have raised expectations that Yellen might signal the possibility of a hike in September, Reuters reported on Aug. 24.