Turkey's ETF on track for worst day ever--down 18%--as country's currency unravels
The largest exchange-traded fund to track Turkey's equity market plummeted on Friday after the European Central Bank raised questions about a possible contagion from Turkey's embattled currency, according to a report form the Financial Times. President Recep Tayyip Erdogan won reelection in a snap vote in June and his growing power in Ankara has unsettled investors because he threatens the independence of the country's central bank. The iShares MSCI Turkey ETF TUR, -14.05% was down about 18%, at last check but had been down by about 21% earlier. The ETF has extended a recent decline that has seen it drop more than 55% since the start of 2018. At current levels, it is on track for its lowest close since March of 2009, according to FactSet data. The Turkish lira TRYUSD, -13.6102% sank against the U.S. dollar, down about 20%. The currency crisis has spilled over in to broader markets as President Donald Trump said in a tweet on Friday that he has authorized the doubling of existing steel and aluminum tariffs on imports from Turkey. The Dow Jones Industrial Average DJIA, -0.64% fell 0.6% in Friday morning trade, the S&P 500 SPX, -0.58% was down 0.5%, while The Nasdaq Composite Index COMP, -0.38% fell 0.5%.
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