The European stock exchanges do not suffer for the failed coup attempt staged on Friday night in Turkey, but the markets of the country led by Recep Tayyp Erdogan undergo important adjustments.
At the end of the morning the Stock Exchange of Istanbul (in the first session after the attempted coup d'état) drops by 5%, while the variations on the main European lists are minimal: Milano -0,3% Frankfurt -0,1% Paris -0,2% and London + 0,2%.
On the other hand, the trend of the currency market is of the opposite sign, where the Turkish lira recovered part of the heavy decline recorded last Friday, when the news of the coup had triggered the worst decline since 2008 on the dollar.
The dollar was trading at 2,9539 Turkish lira this morning, up more than 2%, while the greenback soared above 3,05 during the coup. Prior to Friday's events, the dollar-Turkish lira exchange rate was below 2,90.
According to UBS analyst Serhan Gok, quoted by Dow Jones, the picture of the Turkish markets should stabilize rapidly. Then we didn't see the usual rush to the shelter goods, such as gold and the yen, which usually accompanies phases of market tension.
Moreover, Ankara has promised to support the financial markets in every possible way, guaranteeing unlimited liquidity in case of need and ensuring that it is ready to act to support the lira.
