World markets up as Turkish lira improves and due to good German data
The Turkish lira rebounds 7% after three-week thrashing; the rot also stops for the rand and Russian and rouble; and European bank stocks also drive higher
London — World share markets regained their footing on Tuesday as the threat from the collapse of the Turkish lira ebbed and reassuring German data offset signs of slowing growth in China. After three weeks of losses, Turkey’s lira finally recovered as the country’s central bank moved to ease pressure on the currency, triggering a 7% surge to 6.4 to the dollar. It still lost almost 10% on Monday alone and has shed more than two fifths of its value so far in 2018. The rot also stopped for the rand, the Russian rouble and Argentin’s peso. Argentina’s central bank unexpectedly raised interest rates by five percentage points on Monday. Even so, the peso hit a record low.
"These things get very volatile in both directions once you have had a really big move," Saxo bank’s head of forex strategy John Hardy said. "To suggest this thing is over, you would have to see that Turkey is isolated. I’m not there yet and I don’t think the market is there." European shares also bounced back aft...
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