US stocks drop with euro as Turkey crisis deepens

 Businessman protect his piggy bank from bear market Global stocks declined and the lira weakened as Turkey’s economic crisis threatened to spread. The dollar rose with Treasuries after inflation data.


The S&P 500 Index erased a weekly advance after President Donald Trump doubled tariffs on Turkish steel and aluminum imports, escalating a diplomatic row that tipped the nation’s economy deeper into crisis.

European and emerging-market equities slid more than 1% after President Recep Erdogan’s remarks failed to reassure global markets. The 10-year yield slid to 2.90% as data reinforced the Federal Reserve’s rate-hike intentions.

Geopolitical tensions between the US and other countries set the tone for markets this week, with the latest leg of the lira’s downward spiral triggered by a diplomatic row with America.

Earlier, China responded to the Trump administration’s trade war volley with additional tariffs of its own. The ruble hit a two-year low after the US announced new sanctions on Russia over a nerve-agent attack in the UK.

Elsewhere, the pound fell for a seventh session, heading for its worst week since May, while oil erased a loss after fears about global supplies receded. Tesla shares climbed in after-market trading after CNBC reported that its board planned to meet with financial advisers next week to formalize a process to take the company private.

These are the main moves in markets:

Stocks
The S&P 500 fell 0.7% as of 10:45 AM (EST). It’s down 0.1% on the week
The Stoxx Europe 600 Index sank 1.1%
Germany’s DAX Index lost 1.9%
The MSCI Emerging Market Index fell 1.5%
The MSCI Asia Pacific Index dipped 1%

Currencies
The Bloomberg Dollar Spot Index jumped 0.7% to the highest in more than six weeks on the largest climb in a month
The euro sank 1% to $1.1418, the weakest in 13 months on the biggest dip in more than two weeks
The Japanese yen climbed 0.2% to 110.83 per dollar
The Turkish lira decreased 16% to 6.6 per dollar, the weakest on record with the largest tumble in more than 17 years

Bonds
The yield on 10-year Treasuries sank four basis points to 2.89%
Germany’s 10-year yield fell four basis points to 0.33%
Britain’s 10-year yield fell five basis points to 1.296%
Italy’s 10-year yield increased five basis points to 2.946%, the highest in two months on the largest climb in more than a week

Commodities
West Texas Intermediate crude increased 0.6% to $67.19 a barrel
Gold decreased 0.1% to $1,211.41 an