In this report I cover the early market action from London on Friday, August 10th, 2018. I look briefly at the precious metals, the stock market, the dollar and other currencies.
The focus this morning is on Turkey and its currency the lira. The lira is in meltdown mode as the U.S. cracks down on the country with sanctions and threats of more draconian sanctions in the future. The uncertainty in Turkey is spilling over into Europe as the euro and the British pound break some key technical levels to the downside.
Some major European banks have a fairly big exposure to Turkey and even though some commentators do not think this could lead to further contagion or a domino it is, in my opinion, important to keep an eye on developments.
My conclusion is that there is a great deal of uncertainty and that the geopolitical environment at present is not conducive to stability in world market and trade amongst nations.
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