Turkish lira recovers after Syria military operation

By Bahattin Gonultas

ANKARA

Turkish stocks opened higher on Thursday as global markets wait for clues from the U.S. Federal Reserve’s annual Jackson Hole meeting on Friday as to the outlook for international monetary policy.

Borsa Istanbul’s BIST-100 share index rose 348.04 points (0.46 percent) to 76,464.35 at the opening of Thursday's session, with the banking and holding sectors up 0.43 percent and 0.52 percent, respectively.

On Thursday, the Turkish lira began trading at 2.9470 against the U.S. dollar, up from 2.9485 at Wednesday’s close as all emerging market currencies depreciated against greenback with the expectation of further hawkish comments from Fed Chair Janet Yellen’s speech on Friday.

Meanwhile, oil prices dipped again on Thursday with Brent crude oil at $48.85 a barrel and Texas Intermediate at $46.73 a barrel at 0700 GMT as the rise in U.S. and Asian inventories reverted attention to global oversupply.

Turkish markets will remain focused on developments near the Syrian border after the Turkish Armed Forces moved against Daesh in the northern Syrian city of Jarabulus on Wednesday.

The terrorist group was forced to flee Jarabulus following Turkey’s military operation, President Recep Tayyip Erdogan said on Wednesday.

Speaking at a news conference with U.S. Vice President Joe Biden, who was in the Turkish capital Ankara for a day-long visit, Erdogan said: “Members of the Free Syrian Army and Jarabulus residents have recaptured Jarabulus.”

The Turkish military’s Operation Euphrates Shield was launched early Wednesday, when artillery and airstrikes were followed by Turkish tanks crossing the border to target Daesh and the PYD in support of the Free Syrian Army fighters.

Jarabulus is located five kilometers (three miles) from the Turkish-Syrian border.