Political optimism keeps Turkish lira, stocks high

ISTANBUL

Turkish markets were strong thanks to political and global optimism.

Turkish assets were firm yesterday due to continuing post-election optimism, as well as positive moods in world markets fuelled by Yellen’s low interest rate remarks.

The Turkish Lira continued its strong pace against the U.S. dollar in Monday’s trading for a second day, hovering below the 2.15 level, preserving its gains from investors’ pleasure with local election results that was perceived as a warrant of political stability. The stock market was also bullish, rising above 70,000 points, raising by more than 1 percent compared to March 31’s closure.

Stocks in major markets rose after Federal Reserve Chair Janet Yellen reinforced the need for “extraordinary” commitment to support the U.S. economy.  The Justice and Development (AKP) claimed around 44 percent of the votes in the local elections, soothing escalating concerns from the business world over the course of political stability in the country, which has already received a major blow after corruption claims and social media bans.