Lira crisis: Global stocks, currencies sink as Turkey fever spreads

The lira's plunge and subsequent sell-off in Turkey is giving investors an unwelcome reminder of past crises in emerging markets, leaving traders speculating on how bad contagion can get

US stocks fell and the dollar rallied as the economic crisis in Turkey continued to rattle global markets. Developing-nation currencies slumped with crude oil.
 

The S&P 500 Index reversed early gains and dropped to a two-week low in thin trading. The dollar rallied to its highest since 2017, while Turkey’s lira sank for a fourth day to a fresh record. Emerging-market equities tumbled more than 2 per cent, and South Africa’s rand touched the lowest since June 2016. European banks dragged down stocks in the region. Crude slid below $66 a barrel and gold hit to the lowest since January