Bloomberg – Stocks Drop With Euro as Turkey Crisis Deepens: Markets Wrap

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  • Turkish lira at record low even after Erdogan speech
  •  Dollar climbs with Treasuries after consumer price data

Global stocks declined and the lira weakened as Turkey’s economic crisis threatened to spread. The dollar rose with Treasuries after inflation data.

The S&P 500 Index erased a weekly advance after President Donald Trump doubled tariffs on Turkish steel and aluminum imports, escalating a diplomatic row that tipped the nation’s economy deeper into crisis. European and emerging-market equities slid more than 1 percent after President Recep Erdogan’s remarks failed to reassure global markets. The 10-year yield slid to 2.90 percent as data reinforced the Federal Reserve’s rate-hike intentions.

Geopolitical tensions between the U.S. and other countries set the tone for markets this week, with the latest leg of the lira’s downward spiral triggered by a diplomatic row with America. Earlier, China responded to the Trump administration’s trade war volley with additional tariffs of its own. The ruble hit a two-year low after the U.S. announced new sanctions on Russia over a nerve-agent attack in the U.K.

Elsewhere, the pound fell for a seventh session, heading for its worst week since May, while oil erased a loss after fears about global supplies receded. Tesla shares climbed in after-market trading after CNBC reported that its board planned to meet with financial advisers next week to formalize a process to take the company private.

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Read the full article at Bloomberg.com


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