The reverberations from the bankruptcy of Lehman Brothers investment bank after its shares dropped more than 80 percent before the September 15 opening bell on the New York Stock Exchange have thrown Wall Street into a volatile situation with worldwide echoes, and the fiscal uncertainties have also roiled the Turkish economy.
On September 15 the Turkish stock market fell dramatically by closing, losing 5.27 percent of its value, its lowest level since early July. The decline erased $13.7 billion in market value, while the lira weakened by 1.85 percent to 1.2620 against the dollar (Hurriyet, September 16). The Istanbul Stock Exchange began the day with massive sales, ending the day by dropping 1,952 points and closing at 35,081 points, (Cumhurriyet, September 16).
In contrast, the Paris benchmark CAC-40 index closed down 1.96 percent, Germany’s DAX 30 index of blue chips fell 1.63 percent, and London’s FTSE share index dropped 3.71 percent. Asian losses more closely paralleled Turkey’s, with Tokyo’s Nikkei 225 index falling nearly 5 percent and Hong Kong’s blue-chip Hang Seng Index, 5.4 percent.
WALL STREET CHAOS AFFECTS TURKEY – Eurasia Daily Monitor.
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