Euro and European market currencies are falling on the impact of Turkey's events
11/8/2018 12:00 am
[rtl]Adam Heeg - Translation - Anis Saffar *
The euro fell in tandem with the decline in the value of currencies and shares of emerging markets amid concerns over the spread of the problems faced by Turkey, the Turkish lira recorded a new record low amid the sour atmosphere between them and the United States.
The value of the single currency fell while the dollar strengthened its gains. The Financial Times reported that the European Central Bank was concerned about the risk of Turkey's economy being exposed to some banks. Traders are looking for traditional havens in US bonds and the yen.
Turkish investors hope that President Recep Tayyip Erdogan will give them some reassurance after his speech on Friday, for the first time since the start of the sale of the last bond. Other emerging market currencies also fell in response to the Turkish lira, and US and European stocks fell in parallel with Asian bourses.
"My expectation for the euro is that it has reacted to the impact of the infection on Turkey, and it does not seem to have anything to do with a systemic approach at the moment, but rather a reaction to the surprise," said Raymond Lee, financial director at Capistream Capital.
The geopolitical tensions between the United States and other countries are drawing the rhythm of the markets this week as China responded to the latest spate in the trade war between the two countries by announcing customs tariffs on its part as well. The ruble also hit its lowest level in two years after the United States announced new sanctions against Russia over the British nerve gas attack on a former double agent on March 4.
Investors will remain closely following bank stocks in Europe, with the Financial Times reporting the names of Spanish banks Banco Bilbao, Vizcaya Argentaria SA, UniCredit SAB, BNP Paribas SA, The ECB believes the situation has not yet reached a critical point but is concerned, he says, of exposure to the rapid decline of the Turkish lira, citing the views of well-informed figures.
On the other hand, Tesla shares rose at the end of the market after a report by CNBC that the company's board of directors plans to hold a meeting with financial advisers next week. * About the Bloomberg website[/rtl]