- U.S. stock futures point to a lower open, following other global markets lower in reaction to Turkey’s economic turmoil and fears of possible contagion; S&P -0.3%, Dow -0.3%, Nasdaq -0.4%.
- European bourses are following Friday's sharp losses with a somewhat milder dropoff, with Germany's DAX and the U.K.'s FTSE ~0.5% lower; in Asia, Japan's Nikkei closed down 2% and Hong Kong's Hang Seng slipped 1.5%.
- “Turkey’s problems are quite idiosyncratic and should be relatively well-contained outside of the obvious short-term risk-off unless there’s a major investor retrenchment from EM generally,” according to Deutsche Bank (DE:DBKGn), referring to emerging markets, of which South Africa and Indonesia have been hit particularly hard overnight.
- Contagion fears continue to weigh on European banks, including Spain's BBVA (MC:BBVA); Spanish banks lent $81B to banks headquartered in Turkey during Q1.
- Investor demand for safer assets push the dollar to its highest in more than a year, according to the Wall Street Journal's Dollar Index, and the Japanese yen is up 0.6% against the dollar.
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- Now read: 3 Arguments For A Stronger Dollar And 1 Against
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