A Turkey Of A Wealth Effect: Turkish Stocks Drop To July 2012 Levels

Tyler Durden's picture

As the investing world waits with baited breath for the outcome of the Turkish Central Bank's emergency meeting (released at 2200GMT) to see if they hike rates 300, 400, or 500bps and finally manage to persuade Erdogan that raising rates are essential; the Turkish stock market investors are voting (and selling). The Istanbul 100 index has plunged to its lowest level since July 2012 (and the Lira strength from spike lows has stabilized - just two days shy of record lows).

 

Turkish Stocks removing all that QE-driven ECB "whatever it takes" wealth effect...

 

We can only hope the CBT does not disappoint - even though most sell-side shops suspect they a) disappoint, and b) do not fix investors sentiment...

 

It seems the stop-run off the record lows for the Lira have ceased and Turkey's currency has stabilized 2-day offs its record lows...

 

Of course the Emerging Markets in general are all weak as the MSCI EM Index enters bear market territory once again from the 2011 cyclical peak...(and down over 11% in the last few months).

 

Charts: Bloomberg