Despite Political Troubles at Home, Turkish Markets Weather Global Credit Crisis

摘要

Turkish market players breathed a collective sigh of relief on July 30, when the Constitutional Court removed political uncertainty by rejecting a call to close down the ruling Justice & Development Party. The first half of 2008 had proved to be a challenging period for Turkey. Like all emerging economies, the country was vulnerable, despite a relatively sound foundation, to the global credit crunch, but the domestic political crisis magnified the uncer- tainty. As a result, the Istanbul Stock Exchange underper-formed its peers, dropping some 40 percent between January and June, but it rebounded strongly in July on expectations of a positive judicial outcome.