Global optimism, c/a data lift Turkish stocks in quiet trade
ISTANBUL Oct 11 (Reuters) - A narrowing of Turkey's current account deficit and rising hopes that U.S. lawmakers can secure a deal to avoid a debt default helped to lift Turkish stocks on Friday.
The current account deficit, a major source of concern for investors, shrank to $1.995 billion in August from a revised $5.966 billion a month earlier and was slightly below a Reuters poll forecast.
Sentiment on the stock market was also supported by rising global risk appetite on signs that U.S. Democrat and Republican lawmakers appeared ready to reach an agreement in budget talks that would ensure the United States avoids defaulting on its debt.
Banks led Istanbul's share index 0.71 percent higher to 76,151.02 points, underperforming the emerging markets index which was up 0.82 percent.
The lira weakened slightly due to profit-taking ahead of next week's religious holiday, hitting 1.9835 to the dollar by 1441 GMT, from 1.9745 late on Thursday when it was trading at three-week highs.
The yield on the 10-year benchmark bond, which was issued on Tuesday, closed flat at 8.75 percent in thin trading.
Turkey's Finance Minister, presenting a 2014 budget that prods the deficit higher but keeps it under 2 percent of national output, said he would not indulge in heavy spending to court popularity in the run-up to elections next year.
Financial markets in Turkey will be open until 12 p.m. (0900 GMT) on Monday, then close for the rest of the week, to observe the Muslim holiday of Eid al-Adha. (Reporting by Dasha Afanasieva; editing by Stephen Nisbet)
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