ECONOMY

Turkish markets hit

ISTANBUL (Reuters) – Turkish assets weakened yesterday, with political concerns in benchmark emerging market Brazil increasing pressure on investors already spooked by unrest in Hungary and Thailand. The main Istanbul stock index lost 1.3 percent to close at 37,790.8 points, hurt by rising Turkish bond yields. The lira currency closed almost flat at 1.4700 to the dollar, but in after-hours trade weakened further to 1.4840 nearing a 1.50 resistance level. Danske Bank economist Lars Christensen said the combination of events was making them cautious. «I think we could be in for a fairly sharp rise in risk aversion. That could put renewed pressure on emerging markets – including the Turkish markets,» he said. «It feels like we are getting ready for rising volatility.» At 1.4840 against the greenback, the lira stands 18.5 percent stronger than a mid-June low reached after a selloff sparked by rising inflation.