Stocks Drop With Euro as Turkey Crisis Deepens: Markets Wrap
(Bloomberg) Global stocks declined and the lira weakened as Turkey’s economic crisis threatened to spread. The dollar rose with Treasuries after inflation data. The S&P 500 Index erased a weekly advance after President Donald Trump doubled tariffs on Turkish steel and aluminum imports, escalating a diplomatic row that tipped the nation’s economy deeper into crisis. European and emerging-market equities slid more than 1 percent after President Recep Erdogan’s remarks failed to reassure global markets. The 10-year yield slid to 2.90 percent as data reinforced the Federal Reserve’s rate-hike intentions.
Geopolitical tensions between the U.S. and other countries set the tone for markets this week, with the latest leg of the lira’s downward spiral triggered by a diplomatic row with America. Earlier, China responded to the Trump administration’s trade war volley with additional tariffs of its own. The ruble hit a two-year low after the U.S. announced new sanctions on Russia over a nerve-agent attack in the U.K.