Turkish markets mixed as US growth worries weighs on emerging markets
ISTANBUL - Reuters
The Central Bank raised interest rates by around 500 basis points at an emergency meeting last week despite government’s opposition. AFP photoTurkish markets were mixed today with shares dipping following heavy losses in global markets over U.S. growth worries which dented investors’ appetite for emerging markets assets.
Lower-than-expected U.S. manufacturing data pointed to some loss of steam in the world’s biggest economy and sent U.S., Europe and Asian shares down.
Turkey’s lira fell 17 percent in 2013 and extended its slide this year as a graft scandal hit the government. This heightened investor concern about political stability just as a gradual end to U.S. monetary stimulus knocked appetite for emerging market assets.
The Central Bank raised interest rates by around 500 basis points at an emergency meeting last week despite government’s opposition, stunning markets and causing a spike in the currency.
Turkey’s lira was trading at 2.2578 against the dollar by 11.22 a.m., little changed from 2.2655 yesterday’s closure. It hit a record low of 2.39 last week.
The yield on the 10-year benchmark bond fell to 10.19 percent from a close at 10.24 percent yesterday.
The main Istanbul stock index fell 0.17 percent to 61,569 points, outperforming a 1.35 percent fall in the main global emerging market index.