The iShares MSCI Turkey ETF (NYSEArca: TUR), one of this year’s most controversial and volatile single-country emerging markets exchange traded funds, saw more controversy and volatility Tuesday when it slid almost 2.6% after the government there extended a state of emergency.
In July, Turkish stocks and TUR tumbled following a failed coup. Turkish markets plummeted on concerns of the implications of the ensuing political turbulence after a failed coup d’etat attempt from the military branch. While Erodgan’s swift crackdown after the coup offers stability of sorts, the lingering uncertainty will continue to weigh on investment confidence, writes Swaha Pattanaik for Reuters. Looking ahead, Turkish growth could slow in the wake of the coup attempt. Consumer and business confidence, along with tourism revenue, will likely come under pressure.
SEE MORE: Turkey ETF Tumbles Following Failed Coup
After the coup, the Turkish government declared a three-month state of emergency to in response to the failed coup. The administration is pursuing those accused of being behind the coup and has arrested thousands of army officers, judges, teachers and prosecutors.