Turkey's dollar-denominated sovereign bonds fells as much 4 cents on Friday after tensions in the region escalated sharply with 33 Turkish soldiers killed in an air strike in Syria. The 2034 bond suffered the sharpest falls, dropping 4.3 cents in the dollar to 109.8 cents, according to Tradeweb data.
Turkey's stocks plunged 10% at open on Friday, even as the regulator imposed a one-day ban on short selling, and the Turkish lira slid to its weakest level in almost 1-1/2 years after 33 Turkish soldiers were killed in an air strike in Syria.
The Turkish Capital Markets Board said it had banned short selling on all stocks listed on the Istanbul stock exchange on Friday, after an air strike in Syria's Idlib killed 33 Turkish soldiers. The regulator has taken similar steps in the past in times of high volatility, including last year.
Turkey's lira weakened 0.2% against the dollar on Friday after an air strike by Syrian government forces in Syria's northwest Idlib region killed 33 Turkish soldiers and Turkey said it will no longer stop Syrian refugees from reaching Europe.
Turkish central bank said on Wednesday that the leading indicators signal annual energy group inflation will decline in February due to fuel prices. Recovery in domestic demand stimulates imports, the central bank also said, leading to a decline in the contribution of net exports to economic growth.
Turkey's central bank chief said the economic recovery is strengthening according to preliminary indicators, and corporate loans should continue rising even as inflation edges down toward the end of the year as forecast. Governor Murat Uysal said the inflation outlook is "largely in line" with a central bank forecast that it will end 2020 around 8.2%, from just above 12% last month.
Nine people were killed and buildings collapsed across southeastern Turkey on Sunday when a magnitude 5.7 earthquake struck near the border with Iran, injuring more than a hundred in villages and towns in both countries, government officials said. In Turkey, three of the dead were children, and 50 people were injured, including nine critically, the health ministry said.
1
News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
PDF’s require Adobe® Reader® and will open in a new window.
