Turkish assets rallied modestly on Monday after President Tayyip Erdogan won a narrow victory in a referendum granting him sweeping powers, but the lira surrendered some gains as concerns over the political outlook persisted. Saskia O'Donoghue reports
Turkish markets rallying slightly Monday as the country's President won a narrow victory in a referendum granting him sweeping powers. Turkey's currency - the lira - surrendered some gains however - as concerns over the political future persisted. Analysts said the financial situation is set to vary as President Erdogan makes changes to the country's political landscape. Rumours of an early election all but dashed after the 'yes' vote, but a cabinet reshuffle remains likely. Erdogan won just over 51% of the vote and is now able to abolish the office of prime minster, declare a state of emergency - and draft the country's budget. Prior to the failed coup against Erdogan last July, Turkey had boasted one of the world's best performing emerging markets. It suffered significantly in the wake of the coup, dragged down by instability and a subsequent collapse in tourism. Trading volumes were expected to be lower with most European share markets closed for the Easter holidays.