No Turkish delight in the markets, crash of the Lira making the reserves

  • No Turkish delight in the markets, crash of the Lira making the reserves
    Independent.t. E.
    European stocks yesterday extended their losses, as the crisis in Turkish Lira, have raised concerns about the economic crisis, which could spread to other emerging markets and rattle the European banking sector.
    https://www.independent.ie/business/world/no-turkish-delight-for-markets-as-lira-crash-hits-stocks-37205117.html
    https://www.independent.ie/incoming/article37073801.ece/7ceda/AUTOCROP/h342/traders.jpg

  • Email

European stocks yesterday extended their losses, as the crisis in Turkish Lira, have raised concerns about the economic crisis, which could spread to other emerging markets and rattle the European banking sector.

The stoxx 600 retreated as much as 1.2 PC in the month, for a weekly loss of 0.9 PC.

Technical charts showed the test broke below its 50 – and 200-day moving average, sending a bearish signal.

“The current episode is a classic sign of risk aversion to shoot first and ask questions later,” said Andrew Milligan, head of global strategy at Aberdeen standard investment.

“The investment environment in which ETFs [exchange traded funds] and passive funds are important for cross-border flows, and it is clear to see the Euro, European equities and European Bank stocks all prices under pressure,” he said.

Yesterday’s sales exacerbates the negative performance of shares of European banks this year dropped by 13pc in 2018 amid disappointment that the ECB will keep rates unchanged until at least next summer.

Investors continue to shun stocks of the region, with European equity funds seeing outflows of $600 million in recent weeks.

This marks the 22nd consecutive week of redemptions, according to Bank of America Merrill Lynch strategists.

In Ireland, the iseq overall index joined the rout, falling almost 1pc.

But neither the Bank nor the AIB Ireland has suffered due to fears for Turkey, as a holding firm for session.

Shares in Ryanair fell by 4.1 PC to €12.98 as pilots in four countries yesterday went on strike, piling pressure on the carrier to seal the agreement with their crews.

Swiss-Irish food group Aryzta fell by 9.8 PC to €8.15 as analysts remain divided about the company’s combat readiness will have to raise funds from shareholders.

In the UK the FTSE-100 fell 1pc. The German DAX dropped 2pc. France’s CAC-40 fell 1.6 PC.

Online Business Classes