Turkish markets surrender gains made after Erdoğan poll win

ISTANBUL

Turkish markets surrender gains made after Erdoğan poll win

Turkish markets rallied on June 25 as investors bet on Recep Tayyip Erdoğan’s presidential election victory bringing political stability, setting aside any concerns over the direction of econTurkish markets surrendered early gains on June 25 as concerns over the direction of economic and monetary policy weighed on sentiment, after President Recep Tayyip Erdoğan and his Justice and Development Party (AKP) won presidential and parliamentary elections.

Erdoğan emerged triumphant overnight from his biggest electoral challenge in 15 years, giving him the sweeping executive powers he has long sought and extending his grip on the nation of 81 million until at least 2023.

The lira weakened slightly to 4.6695 against the dollar by 1006 GMT from Friday’s close of 4.6625. It had firmed to as much as 4.5375 in early trading.

“In the short term, markets may be relieved that a period of political instability has been avoided,” said Jason Tuvey, senior emerging markets economist at Capital Economics, as quoted by Reuters.

“But any rally could quickly go into reverse if President Erdoğan uses his strengthened position to pursue looser fiscal and monetary policy, as we fear is likely,” Tuvey added.

The main BIST 100 stock index was flat at 95,818 points, having opened more than 3.5 percent higher. The 10-year benchmark bond yield rose to

Article source: http://www.hurriyetdailynews.com/turkey-lira-surges-against-dollar-after-erdogan-victory-133747

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