How have Turkey's political woes affected Eastern Europe's financial markets?

EASTERN EUROPE

Dr Ghadir Abu Leil Cooper, head of emerging Europe, Middle East and Africa at Baring Asset Management, assesses Eastern Europe's markets and their performance over the past quarter.

Anti-government protests in Turkey last month put the country’s financial markets under pressure during the second quarter of 2013, with the MSCI Turkey index declining 16.9% in US dollar terms. Localised civil protests in Turkey against the redevelopment of central Istanbul’s Taksim Square spread into general protests throughout June and July. Concerns about the potential destabilising effects of these protests on the economy saw the Turkish equity market decline sharply in May and June to levels last seen in October 2012. This was not helped by coinciding with a sharp and general...