Judging by the reaction from SocGen and JPY crosses (and thus global equity markets), the Turkish Central Bank's decision has solved all the tapering, tantruming, turmoiling problems in markets. TRY obviously dumped on the news (now at 2.18 -2100 from highs). JPY crosses instantly exploded higher, automatically lifting US (Dow +60) and Japanese (NKY +110) stock futures markets before they closed. Gold fell very modestly ($1). JPY continued to weaken and when markets re-opened, gold dropped further (-$6 at $1250); Dow is now +110 from pre-Turkey, NKY +175pts; S&P futures are up 10points on the news as stops are run to 1800 but the EEM ETF rallied around 1% (only).
TRY is ripping.. these are 2-week lows (or highs for the Lira against the USD)
EEM rallied then faded to a ~1% gain…
JPY was ramped and stocks followed…
Gold fell modestly on the news… and more when markets reopnened…
via Zero Hedge http://ift.tt/1b2kP4f Tyler Durden