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Turkish markets yo-yo in line with global markets
ISTANBUL, July 8 - Turkish markets ended mixed on Tuesday after falling earlier when world stocks hit a 21-month low on credit fears and then rebounded because of falling oil prices.
Sentiment was supported by the absence of fresh bad news on the domestic political front after last week's detention of high-profile secularists in a police probe of coup allegations, traders said.
"The biggest reason for the market movement is the fall in oil prices. The markets have priced in (U.S. Federal Reserve Chairman Ben) Bernanke's comments," said ING Bank's Behram Camuscuoglu.
Oil fell below $138 on Tuesday from a record high of $145.85 last week, easing concerns over oil-importer Turkey's large current account deficit.
Bernanke said on Tuesday the central bank may extend emergency lending for big Wall Street investment banks, easing credit fears.
The lira currency <IYIX=> ended almost unchanged at 1.2270 against the dollar versus 1.2275 the previous day. The yield on the benchmark Jan. 13, 2010 <0#TRTSYSUM=IS> edged down to 22.11 percent from 22.17 percent.
Fresh credit fears swept global financial markets on Tuesday, pushing world stocks to their lowest levels since October 2006 as concerns intensified that the financial sector would have to raise more capital.
The main stock exchange index <.XU100> fell slightly 0.33 percent to 34,894.68 points.
Political tensions between secularist establishment, including army generals and judges, and the Islamist-rooted AK Party government, which faces closure at court for anti-secular activities, caused sharp losses in Turkish markets last week.
But they have clawed back their losses thanks to foreign capital inflows.
Data on Tuesday showed Turkish industrial production growth slowed sharply to 2.4 percent year-on-year in May after 6.3 percent in April.
Analysts said they expected the slower growth trend to continue in the rest of this year amid a general economic slowdown, but did not expect the data to change expectations of imminent interest rate hikes.
The Treasury cash balance run 1.563 billion lira deficit in June compared to 7.963 billion lira surplus in May, the data also showed.
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