Markets were stunned late on Friday after an attempt by factions of the military to remove President Erdogan from power. In a move that was widely decried by almost all of the members of parliament, Istanbul was temporarily shuttered after the group initiating the coup struggled to take control of the government. However, government forces were quickly able to restore power, raising questions about whether the event was actually staged in an effort to consolidate Erdogan’s grip on the government. However, the move does little to reverse the ongoing malaise in key economic sectors including tourism which is likely to stumble after the latest bout of terrorism and other sources of instability. While growth remains amongst the highest in the globe, high unemployment and inflation continue to weigh on the outlook. The Turkish Lira recovered during the weekly reopening, with USDTRY falling from Friday’s close of 3.0110 to 2.9374.
Turkish Coup Attempt Flounders
Daily Analysis - 18/07/2016