Market Recap - The Situation In Turkey Sends Equities Tumbling Falling As Investors Fear Contagion
The start of the trading week has all been about the issues in Turkey, all of the major bourses in the Asia Pac area are lower this morning. The ASX trades lower by 0.42%, Nikkei -1.86% and the Shanghai Comp. -0.52%. Most of today will be about if the financial system can avoid contagion. The EUR has also fallen as there are some European companies with massive Turkish exposure (i.e. BNP Paribas).
In general, commodities are weaker overnight, gold is currently trading 0.13% lower. The yellow metal is languishing around the $1208/oz level this morning and it will be interesting to see if it can claw back its safe haven status if the situation in Turkey gets worse.
It seems that oil markets are looking to stem any further losses and create a new wave low. Spot WTI is now trading at $67.65/bbl having fallen from $75.24/bbl and price action is showing signs of slowing down.
Copper is looking very hesitant at the moment, the industrial metal is trading at $2.73/lb and is desperately resisting moves lower. Obviously, trade wars are the main issue here but if we get wind of any Turkish supply disruption it could support prices further....