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Turkish market recovers ahead of Moody's review, presidential election
August 8, 2014 / 3:06 PM / in 3 years

Turkish market recovers ahead of Moody's review, presidential election

ISTANBUL, Aug 8 (Reuters) - Turkish assets firmed up on Friday afternoon as fears of a negative credit rating review by Moody’s eased and markets anticipated stability and continuity in the wake of Sunday’s presidential election.

The lira firmed to 2.1606 against the dollar by 1439 GMT compared to 2.1638 late on Thursday along with other emerging market currencies, hurt by a sell-off driven by fears over conflicts in Iraq and Ukraine sapping economic growth.

On the last trading day before Turkey’s first direct presidential election, which Prime Minister Tayyip Erdogan is expected to win, Istanbul’s main share index closed up 0.45 percent at 78,199 points, outperforming the broader emerging markets index which was down 0.54 percent.

The benchmark 10-year government bond yield fell to 9.38 percent from 9.46 percent at Thursday’s close.

Speculation over the outcome of ratings agency Moody’s routine review after the market close on Friday had previously unnerved investors, but those nerves began to settle in the afternoon.

Moody’s has a Baa3 rating on Turkey with a negative outlook. (Reporting by Dasha Afanasieva; Editing by Hugh Lawson)

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