US stocks on the rise but Turkey spurs risk aversion
InvestingOnline.com
13/08/2018, 15:51Wall Street is opening the week with gains as technology companies are leading the rebound and investors confidence in the United States economy remains stable. However, the crisis in Turkey has risen concerns over markets.
Turkey is facing sanction from the US government as tensions increased between the two countries following a failed meeting in Washington. The meeting failed to reach an agreement about the detention of US pastor Andrew Brunson, charged with supporting a group blamed for the coup attempt in 2016.
The crisis hurt the Turkish lira, which has lost 40% of its value in August. USD/TRY is currently trading 0.9% positive on the day at 6.8869. The pair started August at 4.9190.
The Dow Jones Industrial Average is losing 18.13 points or 0.07% to 25,295.01. Since August 7 high at 25,692.72, the Dow has dropped around 380 points. The S&P 500 is trading 0.10% or 2.60 points up on the day at 2,835.85.
DJIA daily chart Dow Jones August 13
The NASDAQ Composite is advancing 0.29% or 23.00 points to price at 7,860.95.
Eight sectors are in the red, and four groups are in the green. The majority of sectors are currently lower. Real Estate is performing the best so far today as it is 0.57% positive. Followed by Information technology with 0.11% gains and health care which is almost flat.
The laggards are telecommunication services with a 0.4% decline on the day, followed by consumer discretionary, 0.33% down and materials, 0.31% negative so far today.
European markets extend declines
In Europe, fears of a Turkish contagion over banks are hurting market sentiment. the FTSE is 0.25% down on the day at 7,647.90; DAX is 0.41% down to 12,372.43; and the STOXX600 is 0.16% negative at 385.24.
