Roiling global markets into the weekend and less than a day after the tragic terrorist attack in the French Riviera town of Nice, it was reported just hours ago that the Turkish military attempted a military coup. Turkish news agency DHA issued a statement that “Turkish armed forces seized the rule of the country completely with the aim of reinstalling the constitutional order, democracy, human rights and freedoms, to make rule of law pervade again, to re-establish the ruined public order. All the international agreements and promises are valid. We hope our good relations with all global countries goes on.”
In response, Turkish President Erdogan made a statement via Facetime from an undisclosed location urging “the Turkish people to gather at public squares and airports” in protest against the military coup.
In a textbook flight to safety response, investors have moved to US Treasuries driving up Treasury prices and inversely lowering yields. The on-the-run 10-year note is yielding around 1.55% down from 1.5975% pre-coup. The Turkish Lira plummeted against the US Dollar to 3.0202, the biggest daily plummet since 2008. EUR/USD also continued its drop, falling further to 1.1037.
Depending on who emerges in control will determine what the market impact will be by the time markets re-open on Monday, either way the perception of a stable country is fading.
We will continue monitoring the markets.
Feel free to give us a call if you need anything.
Danny
