Turkish markets open weak after holiday

The Turkish Lira and Turkish stocks began the day weak as markets returned from a five-day break for Eid al-Fitr, during which regional politics remained tense as Israel continued its bombardment against Gaza while Western countries announced fresh sanctions against Russia over Ukraine.

The dollar/lira ratio opened the first day after the holiday with a steep decline of 1.5 percent, the highest level in two weeks.

The ratio slumped to 2.1344 at 8 a.m., only to recover to around 2.1204 as of 10:15 a.m.
The main stock exchange index, Borsa Istanbul (BIST) 100, also started off the day with a nearly 300,000-point slump to 83,919 points.

While Turkish markets were on Eid-al Fitr vacation that started on July 25, other emerging markets sank, weighed down by concerns that tougher sanctions against Russia as well as robust growth data announced by the United States.

The U.S. economy rebounded vigorously in the second quarter, growing at a peppy 4 percent. The Federal Reserve remained cautious, sticking to its dovish stance after a two-day monetary policy meeting, still seeing some latent weakness that requires keeping interest rates low for the foreseeable future.

Meanwhile, Israel pressed ahead with its Gaza offensive throughout the holiday, raising tension in the region further.