European shares rose today after Turkey ramped up its interest rates overnight to defend its currency, helping buoy stocks that had been hit by a selloff in emerging markets.
Sectors sensitive to global growth trends, such as miners , led the market higher after Turkey’s central bank jacked up its overnight lending rate to 12 percent from 7.75 percent in a much sharper move than forecast. Investors said the move could help stem a recent sell-off in emerging markets.
The pan-European FTSEurofirst was up 0.9 percent at 1,309.41 at 0836 GMT, having fallen 4.2 percent in three sessions into the beginning of this week.
In Asia, Japan’s Nikkei share average jumped 2.7 percent, its biggest gain in almost five months, after Turkey’s huge hike in interest rates halted selling in emerging markets and bolstered risk appetite.
The Nikkei rose to 15,383.91, moving away from a 2-1/2 month low just below 15,000 set on Monday and snapping a four-session losing streak.
Source: Buenos Aires Herald