Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Markets rally over Turkey election

Monday, November 02, 2015 - 01:41

Turkish assets rally, with the lira on track for its biggest one-day gain in seven years and stocks up 5 percent after an election that returned the country to single-party rule, ending months of investor uncertainty. Ciara Lee reports

▲ Hide Transcript

View Transcript

The lira's biggest one-day gain in almost seven years and stocks up nearly 6 percent - investors showed their relief over the Turkish election as the country returns to single-party rule. The AK Party founded by President Erdogan, took just shy of half the vote. It offers a reprieve from the uncertainty that has plagued Turkey's markets since the AKP lost its single-party majority in June. Pressure is now on for the government to boost the flagging economy. And the EU will be keen to see how it handles the increasing refugee crisis in the region. Baader Bank's Robert Halver. (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "I think the stock market would have wanted a different result, a coalition in Turkey. If they now try to fundamentally change the constitution, that won't be to the stock market's taste." Political concerns this year have led Turkish assets to lag far behind their emerging market peers, with the lira having fallen around 20 percent. That's a far cry from the booming growth the country has seen in recent years. BGC's Mike Ingram. (SOUNDBITE) (English) MARKET STRATEGIST, BGC PARTNERS, MIKE INGRAM, SAYING: "One of the things that Erdogan needs to do is certainly dial back on tax on some of the institutions, dial back on tax on the central bank, and let it get on with the job it has to do. Overall he needs to make investors confident that Turkey is a place where it is safe to invest." But safety is a concern. In an attempt to win back nationalist support, the AKP government in recent months struck against Kurdish militants, putting an end to a 2-1/2-year ceasefire And the war in neighbouring Syria has worsened Critics say they fear a drift to authoritarianism under the president.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Markets rally over Turkey election

Monday, November 02, 2015 - 01:41