Financial markets showed signs of resilience following a failed coup attempt in Turkey, with the Turkish lira leading a recovery in emerging-market currencies and shares in Asia excluding Japan holding near their highest level since October. Haven assets including the yen and gold fell.
The lira recovered about a third of its loss from Friday, when news that army officers had tried to seize power triggered the currency’s steepest slide since 2008. South Africa’s rand advanced with the Mexican peso, while the yen extended its biggest weekly decline since 2009. Futures on the S&P 500 Index gained, while the MSCI Asia Pacific excluding Japan Index was little changed following its largest weekly jump in four months. Gold sank to this month’s low. Financial markets are shut Monday in Japan and Thailand for holidays.
The failed putsch in Turkey came less than a week after global equities had recovered from the selloff that followed the U.K.’s June 23 vote to leave the European Union, an event that wiped out almost $4 trillion of market value over two trading days. Turkish officials over the weekend sought to limit the impact on financial markets by promising unlimited liquidity to lenders and measures to support the lira.
“Geopolitical risk has reared its head again,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages more than $110 billion. “But it’s at least the fourth coup in Turkey since 1960 and I suspect no lasting impact on global markets.”
Hermes Asset Management is among investors seeing potential for a relief rally in Turkish assets even amid longer-term concern about the country’s political and economic situation. Rabobank and CrossBorder are predicting outflows from Turkey. Turkey’s deputy prime minister posted on Twitter that there’s “no need to worry.”
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The lira recovered about a third of its loss from Friday, when news that army officers had tried to seize power triggered the currency’s steepest slide since 2008. South Africa’s rand advanced with the Mexican peso, while the yen extended its biggest weekly decline since 2009. Futures on the S&P 500 Index gained, while the MSCI Asia Pacific excluding Japan Index was little changed following its largest weekly jump in four months. Gold sank to this month’s low. Financial markets are shut Monday in Japan and Thailand for holidays.
The failed putsch in Turkey came less than a week after global equities had recovered from the selloff that followed the U.K.’s June 23 vote to leave the European Union, an event that wiped out almost $4 trillion of market value over two trading days. Turkish officials over the weekend sought to limit the impact on financial markets by promising unlimited liquidity to lenders and measures to support the lira.
“Geopolitical risk has reared its head again,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages more than $110 billion. “But it’s at least the fourth coup in Turkey since 1960 and I suspect no lasting impact on global markets.”
Hermes Asset Management is among investors seeing potential for a relief rally in Turkish assets even amid longer-term concern about the country’s political and economic situation. Rabobank and CrossBorder are predicting outflows from Turkey. Turkey’s deputy prime minister posted on Twitter that there’s “no need to worry.”
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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