New York — World share markets rebounded on Tuesday as Turkey’s lira pulled out of a recent nosedive and reassuring data from Germany helped offset the latest wobbles in China’s giant economy. After three weeks of heavy pounding, the lira got some respite as signs that Turkish authorities were trying to address the unresolved damage triggered an almost 5% relief rally to about 6.5 to the dollar. Still, the currency lost almost 10% on Monday and nerves were briefly tested again as President Recep Tayyip Erdogan urged Turks to boycott US electronic products in response to recent criticism from Washington.
"I don’t believe it’s all over," said Minh Trang, senior currency trader at Silicon Valley Bank in California. "We are just getting a bit of reprieve from the recent down move." The Turks have exhausted the possibility of interest rate hikes and are backed into a corner by their inadequate level of currency reserves, Paul McNamara, emerging-markets investment director at GAM In...
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