Bumper Turkish rate hike sends lira surging, world stocks rally

mercredi 29 janvier 2014

Men smoke in front of a large Turkish flag in central Istanbul Turkey's lira saw its biggest jump in five years on Wednesday after the central bank stunned investors with a huge rate hike designed to staunch and reverse a major flight from risk. With the U.S. Federal Reserve expected to press on with cutting backs its huge stimulus later, and South Africa's central bank, another of the countries caught up in recent developing market storm, also meeting, a hectic 24 hours may be in store. European shares rode the wave of optimism sparked by Turkey as they opened, with Britain's FTSE 100, Germany's DAX and France's CAC 40 all climbing a second day running, with the gains of around 0.9 - 1.0 percent. Turkey followed India by tightening policy at a midnight meeting of its central bank, with a far larger than expected hike of 425 basis points taking the overnight lending rate all the way to 12 percent.








via Business News - Yahoo Finance http://ift.tt/L8kV07

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