Turkish Lira Crisis Takes Toll on European Stock Markets

By Investors Hub

European stocks have fallen on Monday to extend losses from the previous session as fears over the collapse of the Turkish lira continue to spook the markets.

The UK’s FTSE 100 Index is down by 0.3 percent and the German DAX Index is down by 0.4 percent, although the French CAC 40 Index has bucked the downtrend and inched up by 0.1 percent.

The lira recouped some losses after hitting a new record low earlier today on concerns about a deepening rift with the United States.

After the currency witnessed a free fall late last week, Turkey’s central bank took measures to boost liquidity in the foreign exchange market.

In addition, Turkish Finance Minister Berat Albayrak announced plans to calm the highly volatile financial markets.

Banks have continued to fall on contagion fears, with Commerzbank, Deutsche Bank, BNP Paribas, Credit Agricole and Societe Generale sliding 1-2 percent.

GAM Holding has also dropped after the Swiss money manager said it would liquidate some funds run by a suspended fund manager.

Air France KLM shares have fell more than 5 percent in Paris after Dutch pilots threatened further strikes if pay talks with management did not resume before Friday.

Shares of Bayer have also plunged in Frankfurt after a shocking US ruling against its subsidiary Monsanto.

On the other hand, shipbroker Clarkson has soared after the company said trading conditions have improved in the second quarter.