The Turkish lira and South African rand are piling on the misery for equities
Equities started the session a little softer to begin with as geopolitical tensions weighed and they moved lower thereafter prompting some risk off flows in the market. But the case there is only exacerbated by further worries from emerging markets again:
The lira is down to session lows against the dollar, lower by 2.5% on the day. The rand meanwhile is lower by 1.9% currently. The flows here is helping to give more reason for investors and traders to side with the yen and the dollar while at the same time also moving flows out of European stocks.
It wasn't too long ago that the falling Turkish lira started to cause some worries for regional banks in Europe and those concerns will start to come back in again as the lira continues to fall on the week. Since Turkish markets returned from their break last week, the lira has fallen by 9.5% in the four trading days so far.
Ouchie.
