Global markets stumble as traders dump equities amid growing Turkish crisis
Investors eschew stocks and emerging markets and run for the cover of safer assets such as government bonds and the dollar
London — World markets shuddered on Monday, as Turkey’s worsening currency crisis persuaded investors to dump equities and emerging markets and flee to safer assets such as government bonds and the dollar. The MSCI world equity index, which tracks shares in 47 countries, was down 0.5% on Monday and 1.6% since Friday’s open as the Turkish lira plunged to a record low, forcing the country’s finance minister to announce an economic action plan to ease nerves.
The lira has tumbled on worries over Turkish President Tayyip Erdogan’s increasing control over the economy and deteriorating relations with the US. It fell as much as 12% at one stage on Monday, then recovered to a loss of 7% by 8am GMT...
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