Companies close to Fethullah Gulen’s religious movement plunged in Istanbul on speculation that Turkish Prime Minister Recep Tayyip Erdogan is regaining the upper hand in a power struggle with the Islamic cleric.
Turkiye Halk Bankasi AS, the lender whose shares have slumped 17 percent since a corruption probe started, said it hasn’t broken domestic or international laws after its chief executive officer was arrested at the weekend.
Prosecutors asked an Istanbul court to jail the sons of Turkish ministers pending trial on graft charges, stepping up a corruption probe that has shaken Prime Minister Recep Tayyip Erdogan’s government and roiled markets.
Turkey’s lira tumbled to a record against the dollar and euro while bonds fell as Prime Minister Recep Tayyip Erdogan’s government purged police leadership in a fight back against a probe into official corruption.
Turkish Prime Minister Recep Tayyip Erdogan dismissed dozens of police chiefs as he vowed to fight a corruption probe targeting his party, while the country’s top business group warned the dispute may destabilize the economy.
Yields on 10-year Treasury notes climbed to a three-month high, gold sank and the Standard & Poor’s 500 Index fell from a record following the Federal Reserve’s decision to reduce bond purchases. European stocks rose, catching up with yesterday’s U.S. rally.