Turkey’s currency continues to plunge, rattling vulnerable emerging markets. A defiant speech from President Recep Tayyip Erdogan, and policy moves infusing liquidity from the nation’s central bank failed to allieve investor concerns about the country’s perilous financial condition. The lira ended 6.6% lower at 6.88 against the U.S. dollar on Monday, after falling as much as 10% in Asian morning trading. The country’s debt and stock markets were also swept up in the turmoil.
The lira is down more than 40% this year, battered by concerns about the NATO member’s political and economic stability and continuing trade tensions with the U.S.
Despite fears of a Turkish contagion, U.S. markets wobbled, but remained generally consistent. Drawing broad conclusions from history, analysts agree the U.S. can generally ignore what happens in emerging markets, unless it involves China. The U.S. economy still looks poised to rack up another quarter of solid growth after expanding at its fastest pace since 2014 in the April-June period, according to Bloomberg. The bigger fear is that, in fact, China is seeing some turbulence. Analysts still expect to see interest rate hikes from Fed. Chairman Powell.
Did you know?
In January 2016, Tesla produced 4526 vehicles out of their Fremont facility. Tesla’s June 2018 production numbers represent a 337% increase over the January 2016 mark.
“That when the sea was calm all boats alike show’d mastership in floating.”
—Shakespeare, The Tragedy of Coriolanus
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