European stocks followed Asian stocks lower after a news report was concerned Turkey's problems spread to the euro area. The single currency fell, while the dollar advanced alongside state taxes.
The Stoxx Europe 600 Index decreased, dragged by banks and miners after the Financial Times reported that the ECB was concerned about the Turkish exposure of some lenders. US stock options decreased with most Asian stocks. The euro fell to the weakest level in a year, while the dollar, the yen and the tax authorities all rallied. Turkey's lira struck a new record low among the supply of diplomatic relations with the United States while Turkish investors are looking for President Recep Tayyip Erdogan to calm his nerves when he talks Friday for the first time since the last sale began.
"My guess on the euro is that it is related to infection from Turkey," says Raymond Lee, chief executive officer at Kapstream Capital, Sydney. "At the moment, it does not feel like a systematic issue but more a market reaction to the surprise" over the FT report.
Geopolitical tensions between the United States and other countries have set the tone for the markets this week, with the latest leg of the downward spiral of the lira triggered by a diplomatic spit with America. Earlier this week, China responded to the Trump Administration's latest trade war volleyball with its own additional charges. The ruble struck a two-year low after the United States announced new sanctions against Russia on March 4, the Nerve Object Attack of a former double agent in Britain
Elsewhere, the Tesla shares fell in aftermarket trading after CNBC reported that the board planned to meet with financial advisors next week to formalize a process to take the company privately. The gold fell while the oil was stable.
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These are the most important movements in the markets:
- The Stoxx Europe 600 Index decreased 0.5 percent from 8
- Germany's DAX index dropped 0.9 percent.
- MSCI Emerging Market (19659014) The index dropped 1 percent to the lowest in more than one week at the largest dip in more than one week.
- MSCI Asia Pacific Index decreased 1.1 percent, the largest dip in more than a week.
- Bloomberg Dollar Spot Index increased 0.4 percent to the highest in more than six weeks.
- The euro fell 0.5 percent to $ 1.1465, the weakest in 13 months.
- The British pound decreased 0.3 percent to $ 1.2786.
- Japanese yen climbed 0.2 percent to 110.91 per dollar.
- The Turkish lira dropped 4.6 percent to 5.8298 per dollar, the weakest on record.
- The yield on 10-year tax papers dropped four points to 2.89 percent.
- Germany's 10-year return reduced four points to 0.34 percent.
- Britain's 10-year return fell five points to 1,296 percent.
- Italy's 10-year return increased four points to 2,936 percent, the highest in two months.
- West Texas Intermediate Crude Declined
- Gold decreased 0.3 percent to $ 1,208.37 per ounce