Turkish assets weaken after manufacturing index drops to 5-year low
ISTANBUL - Reuters
The dolar/lira ratio surpassed 2.15 level in the afternoon trading, touching its highest level in one-and-a-half-month.Turkish assets has sunk after a survey showed a contraction in the country’s manufacturing sector in July, with the index at its lowest in more than five years.
The dolar/lira ratio surpassed 2.15 level in the afternoon trading, touching its highest level in one-and-a-half-month, as the lira continued to slip against the U.S. currency.
The HSBC Turkey purchasing managers’ index for manufacturing, which accounts for about a quarter of the country’s gross domestic product, fell to 48.5 in July from 48.8 in June, the lowest since April 2009.
Markets were also assessing data which showed Turkish exports in July were unchanged year-on-year, with an export increase to European Union countries offset by a 46 percent slump in exports to conflict-ridden Iraq.
The benchmark 10-year government bond yield rose to 9.18 percent from 9.08 percent at July 31’s close. The main Istanbul share index fell 0.53 percent to 81,745.57 points, slightly outpacing the broader emerging markets index, which was up 0.68 percent.
Shares in Turkcell were up 0.36 percent after Cukurova Holding said it paid Russia’s Alfa Group $1.6 billion to recover a disputed stake in the mobile phone operator, taking a major step towards regaining control of the company.