World Stock Markets Today: Down On Turkey’s Currency Problem

13 August 2018 (9:17 AM IST)

12 August 2018 (11:51 PM EDT)

World stock markets have started this new week with highly negative numbers, picking up where they had closed on Friday last. As we know, this new negative wave in global stocks has been triggered by a crash in Turkish Lira, which was a result of new U.S. sanctions on Turkey.

Not only Lira, other smaller currencies are also falling against the U.S. Dollar and are triggering negative trend in emerging markets like India.

U.S. and European stock futures are highly negative at the time of writing. Dow Jones and DAX futures have fallen by more than -100 points, indicating deep gap down opening in U.S. and European stock markets. Global stocks are following this low trend and all major Asian stock markets are trading highly negative. Indian stock markets have also opened with highly native numbers as Indian rupee fell against USD.

World stock markets are expected to trade negative but can turn highly volatile later in the session. Turkey plans to announce some measures to stabilize its currency and global stocks may recover slightly if those measures have any positive effect on currency markets.

However, the main problem is deeper than that (U.S. sanctions against Turkey) and another, but similar problem of sanctions against  Russia is also spooking world stock markets.

So, expect this bearish trend within this year’s range to continue for some time to come. Since this negative trend is event-generated, only positive news will help is stopping/ reversing this trend.

Day traders should be cautious and should not trade positive, expecting any technical support.

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