Tuesday, November 20, 2018 10:21:34 PM - Markets open
VN-INDEX 919.02 +2.96/+0.32%
HNX-INDEX 103.91 -0.04/-0.04%
UPCOM-INDEX 52.06 -0.34/-0.65%
European stocks enjoy breather as Turkish lira rebounds
thanhnienviet.vn - 8/15/2018 9:30:42 AM
 (0 ratings. You must sign in to rate.)
Even as the selling pressured abated, investors kept a nervous eye on Ankara after Monday's bloodletting which saw the lira hit record lows and equity markets go into freefall on concerns Turkey's financial crisis could spread globally.
 
"The Turkish lira has finally found some support after two days of intense selling that triggered panic across the markets," said Fawad Razaqzada, market analyst at Forex.com, adding that the lira had clawed back most of the previous day's losses.
 
'A LONG WAY TO GO'
 
"But it has a long way to go following its 13 per cent or so drop on Friday and its previous declines," he said.
 
In European deals, the Turkish unit advanced to 6.47 to the dollar and 7.39 to the euro, which was well off the all-time record lows seen the previous day, after Turkey's central bank vowed to boost liquidity.
 
In Europe, London and Paris equities were down at the close, while Frankfurt was flat.
 
In New York, however, the Dow, S&P 500 and the Nasdaq all posted gains of around half a per cent, with analysts reporting that investors were less worried about Turkey's crisis affecting other emerging economies.
 
The improving exchange rate of the Turkish currency helped ease fears for other emerging currencies which have become entangled with the lira's woes.
 
But the Indian rupee still fell to a record low of 70 to the dollar on Tuesday.
 
"Turkey's central bank managed to calm down the currency markets for the time being by committing to provide liquidity for the embattled Turkish lira," said Fiona Cincotta, senior market analyst at traders City Index.
 
"The lira even managed to claw back some lost ground ... allowing stock and commodity markets to recover."
 
RATE HIKE NEEDED
 
But concerns remain about how the crisis will pan out, with Turkish President Recep Tayyip Erdogan in combative mood, accusing Washington of plotting against his country, and calling for a boycott of US electronic goods.
 
"A sizable rate increase by the Central Bank of the Republic of Turkey (CBRT) followed by drastic measures to reduce the fiscal deficit still appears to be the most viable option to re-anchor the lira and pull the country's economy from the brink," said Dean Popplewell, a market analyst at OANDA.
 
On the Milan stock exchange, shares in motorway operator Atlantia were sharply lower after a bridge collapsed on the A10 Italian motorway which the company runs.
 
They were down by around 5.5 per cent in late trading, having earlier been suspended temporarily when their drop exceeded the permitted 10 per cent threshold.
 
In Asia, Shanghai and Hong Kong equities sank into the red on downbeat Chinese data, which also weighed on commodities.
 
Key figures around 1540 GMT:
 
Dollar/Turkish lira: DOWN at 6.47 lira from 6.88 lira late Monday
 
Euro/Turkish lira: DOWN at 7.39 lira from 7.87 lira
 
Euro/dollar: DOWN at US$1.1370 from US$1.1410
 
Pound/dollar: DOWN at US$1.2757 from US$1.2771
 
Dollar/yen: UP at 110.84 yen from 110.70 yen
 
London - FTSE 100: DOWN 0.4 per cent at 7,611.64 points (close)
 
Frankfurt - DAX 30: FLAT at 12,358.87 (close)
 
Paris - CAC 40: DOWN 0.2 per cent at 5,403.41 (close)
 
EURO STOXX 50: FLAT at 3,409.44
 
New York - Dow Jones: UP 0.4 per cent at 25,296.25
 
Tokyo - Nikkei 225: UP 2.3 per cent at 22,356.08 (close)
 
Hong Kong - Hang Seng: DOWN 0.7 per cent at 27,752.93 (close)
 
Shanghai - Composite: DOWN 0.2 per cent at 2,780.96 (close)
 
Oil - Brent Crude: UP 86 cents at US$73.47 per barrel
 
Oil - West Texas Intermediate: UP 79 cents at US$67.99 per barrel
 
Source: AFP
 
Read original article here
Older News
12/07 OPEC warns of trade war 'risks' for oil market
14/12 Brexit will be a key challenge for 2018, says next euro zone finance chief
 
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 3:10:47 PM
VN-INDEX 919.02 +2.96/+0.32%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.