Failed Turkey coup could weaken long-term investment case despite 'swift resolution'

'High risk' event for emerging markets

The "swift resolution" of a military coup in Turkey over the weekend partly cushioned the country's stockmarket this morning, but asset managers have warned Turkey's already weak fundamentals could now face "significant negative pressure" as ratings agencies look on.

Shares on the Borsa Istanbul 100 index are down 7.3% this afternoon, following an attempt by a faction of Turkey's military to overthrow the country's president Recep Tayyip Erdogan (pictured), which ultimately led to the death of 290 people. Meanwhile, the Turkish lira, which initially fell by nearly 5%, has subsequently recovered much of its lost ground, rising by 3% so far today. The recovery comes despite the arrest of 6,000 people, with Erdogan vowing to purge state bodies of the "virus" that caused the revolt, according to the BBC. The army faction failed to gather the public...