This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Deal: European, Asian Shares Rise as Turkey Hikes Interest Rates

LONDON (The Deal) -- European and Asian markets were in recovery mode Wednesday after the Turkish central bank last night more than doubled its main interest rate to stabilize the tumbling lira, and helped stabilize other emerging market currencies in the process.

The central bank raised its weekly repurchase rate from 4.5% to 10%, and increased the top rate from 7.75% to 12%, defying the wishes of Prime Minister Recep Tayyip Erdogan. The move followed a surprise interest rate rise in another key emerging market, India, the previous day and gave investors some hope that the panic outflows from key markets into haven currencies and commodities like the Yen or gold might subside.
But here's the thing. The sugar high from eating Turkish Delight doesn't last too long, and by mid-morning London time not only the lira, but also other emerging market currencies like the South African rand had begun to fall back. There's also still that nagging worry that the Federal Reserve on Wednesday announce something other than the widely expected $10 billion taper reduction in its monthly bond-buying. Global stock markets followed the currencies down.
That said, the key European markets were still up compared with Tuesday's close. London's FTSE 100 was up 0.75% at 6622 and in Paris the CAC40 (which had been up 1% in early trading), was still up 0.47% at 4205. Frankfurt's DAX index was up 0.89% at 9490.75.
In London, supermarket chain J. Sainsbury was the biggest faller, down 1.88% to 350 pence on the not-unexpected news that CEO Justin King has decided to step down in July after a highly successful 10 years in the post. Interestingly, he's chosen to waive a $2.9 million severance cash payout, maybe because the last quarter has been tough for the U.K. supermarket sector in general and Sainsbury's has been no exception. Sainsbury this month reported its slowest growth in nine years over the crucial Christmas trading period and downgraded its forecast of sales expansion for the full year. King will be replaced by group commercial director Mike Coupe.
But mining stocks were up this morning, after strong numbers fourth quarter numbers from Anglo-American for 2013 for most of its operations and especially a 25% increase in iron-ore production compared with Q4 2012, after the strikes that damaged its output and image in that year.
In Japan, meanwhile, the strengthening emerging market currencies led to a relative weakening of the yen, which in turn boosted the export stocks on its Nikkei 225 index. The Tokyo market closed up 2.7% at 15,383.91. In Hong Kong, billionaire Li Ka-shing's utility company Hong Kong Electric sank on its flotation this morning after pricing at HK$5.45 the bottom of its bookbuilding range. The stock closed at HK$5.34. However, the Hang Seng index was up 0.82% at 22,141.61.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs