Home ›› 19 Nov 2021 ›› Stock
World stock markets and the dollar rally stalled on Thursday, oil skidded on talk of a coordinated release of reserves, while Turkey's lira tumbled again on bets its central bank would defy economy logic later and slash interest rates.
Oil prices slipped below $80 a barrel overnight after both the United States and China hinted they could tap their fuel reserves , but there was sign of Europe's inflation pressures easing as gas prices there consolidated a 60 per cent November surge amid wrangling over the Nord Stream 2 pipeline.
That and the fact the euro was finally getting some respite from the dollar in the currency markets /FRX meant the record-high STOXX 600 equity index (.STOXX) struggled early on after 17 gains in the last 19 sessions.
In emerging markets, Turkey's lira was flirting with a collapse through 11 per dollar. The currency has slumped more than 25 per cent this year as inflation has soared to 20 per cent and pressure from the country's President Tayyip Erdogan in recent days has stoked expectations the central bank will slash interest rates by at least another 100 basis points at 1100 GMT.
"The main thing that drives the lira these days is what President Erdogan says and it feels like recently
that he has just decided to let it go," said Vladimir Demishev a senior interest rates trader at Sova Capital, adding his view of what would happen with rates later had been changing all week.
