Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - Bank Stocks Hit by Turkey Fears Midday; Chip Stocks Slide

Published 08/10/2018, 11:30 AM
Updated 08/10/2018, 11:30 AM
© Reuters.  The plunge in the Turkish lira hit U.S. bank stocks.

© Reuters. The plunge in the Turkish lira hit U.S. bank stocks.

Investing.com - Financial stocks were mostly lower midday, as investors fretted about the plunge in the Turkish lira and its impact on the global banking system.

The S&P Finance Sector index fell about 1.2% at 11:25 AM ET (15:25 GMT).

The lira tumbled double digits to a fresh historic low against the U.S. dollar after President Donald Trump announced he was doubling tariffs on steel and aluminum for Turkey. The two countries are locked in a dispute over Turkey’s detention of a U.S. pastor.

USD/TRY surged about 15% midday, not far from an all-time high of 6.6170 earlier in the session.

Earlier on Friday, Turkish President Tayyip Erdogan urged Turks to exchange gold and hard currency into lira, framing the crisis as a "national battle" against economic enemies.

The currency’s decline raised fears about how much exposure banks have to Turkey. European banks have the most exposure, but U.S. banks are owed about $18 billion, according to the Bank of International Settlements.

Shares of Citigroup (NYSE:C) fell about 2.2% midday. Goldman Sachs (NYSE:GS) was off about 1.5%, while Morgan Stanley (NYSE:MS) fell 1.5%. Bank of New York Mellon (NYSE:BK) lost about 2.4%.

Elsewhere, semiconductor and semiconductor equipment stocks struggled after Microchip Technology (NASDAQ:MCHP) warned on upcoming quarterly revenue. The stock tumbled about 12%. Microchip said on its earnings call talk about tariffs and a potential trade war is making its customers “nervous.”

Texas Instruments (NASDAQ:TXN) fell about 3.6% and KLA-Tencor (NASDAQ:KLAC) lost about 2.5%, Intel (NASDAQ:INTC) was down close to 2.4% and Analog Devices (NASDAQ:ADI) was off around 3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.