Turkish shares look to rebound after coup attempt

Global stock markets were higher Monday after Wall Street gains and better Chinese economic data helped to defuse jitters over Turkey’s failed coup. Turkey’s lira clawed back some of its losses from Friday, sparked by an attempted military putsch.

A failed coup in Turkey had dented risk sentiment and bolstered the perceived safe-haven yen before it ran its course.

The activities and operations of the Gulen Movement in the USA and Turkey have been scrutinized by a number of American media outlets that question the movement’s motives, opacity and why the US government is providing refuge to Gulen, who is now facing numerous charges in his native Turkey, including treason and an extradition request. “It’s hard for a market that is preoccupied on management’s every word to be influenced by Turkey”.

Bank of America BAC.N , the No. 2 USA bank by assets, and fellow S&P 500 component Hasbro HAS.

Pressure remained on crude oil prices after they settled down more than 1 percent on Monday after rising stockpiles of crude and refined fuel intensified fears of another major supply glut. Yahoo! Inc. and Netflix Inc. are among companies reporting earnings today.

At 0900 BST, the benchmark Stoxx Europe 600 index, Germany’s DAX and France’s CAC 40 were all up 0.8%.

Japan’s SoftBank Group’s 9984.T $32 billion deal to buy British chip designer ARM Holdings ARM.L briefly lifted European equities to a three-week high.

Japanese financial markets are closed Monday for a holiday.

The U.S. Ambassador to Turkey, John Bass, issued a rebuke of Turkish President Recep Tayyip Erdogan’s accusations that the United States is harboring Gulen. Germany’s DAX added 0.4 percent to 10,109.22.

Turkey’s currency, the lira, fell by almost 5 percent on Friday following news of the takeover declaration. All other interest rates were left unchanged, including the borrowing rate, which was left at 7.25 percent. It was last up 1.75 per cent at 2.9660 lira.

The dollar index was little changed at 96.541.

Official figures on Friday showed U.S. retail sales advanced 0.6 per cent in June, signalling a pick-up in consumer spending, which drives about two-thirds of the world’s biggest economy. But the Turkish currency is still far weaker than before the coup, when it was worth 2.8900 per dollar. Along with other opposition parties the CHP has condemned the attempted coup.

In commodity markets, spot gold eased to $1,328.16 per ounce. Lower interest rates could translate into weaker returns for foreigners investing in Turkey.

Treasuries fell, sending the yield on similar-maturity notes one basis point to 1.56%.