Turkish Assets Move to Red Zone

Global investors are abandoning Turkish assets as the lira hits historical lows. Since last May, the currency has fallen 26% against the US dollar in a storm of debilitating fundamentals. The central bank has materially missed inflation targets; the tourism sector has been undercut by terrorist attacks. In theory, the collapsing currency could support growth. But there are limits to that analysis. Turkey’s key export markets include the European Union and Russia. Neither will deliver meaningful growth this year. International travelers are taking greater interest in destinations like Croatia and the United Arab Emirates. Meanwhile, the oil-price dividend has dissipated, while the lira-based cost of internationally-traded commodities is soaring. This week’s central-bank decision to leave its key benchmark rate unchanged may be a death blow to any lingering confidence in the economic outlook.

Learn more at City A.M.

© 2017 Cranganore Inc. All rights reserved.
Unauthorized use and/or duplication of any material on this site without written permission is prohibited.

Image: Resort cities like Bodrum face a dire summer season. Credit: EvrenKalinbacakat at Can Stock Photo Inc.

Found Attaché

Bourse Performance

We spotlight the best-performing stock exchanges across emerging markets worldwide.

Top Five
Year-to-Date Through 31 October 2019

Egypt37.3 %
Greece34.1 %
Russia32.4 %
Taiwan20.9 %
Colombia19.3 %

Data is shown on a price-return basis in US dollar terms for the broad market index. In this context, we do not report on narrow segments such as China A shares or Russia ADRs. This list excludes performance information on smaller, so-called frontier markets.

Source: MSCI.