Investing.com - Here are the top five things you need to know in financial markets on Tuesday, August 14:
1. Turkish Lira Roars Out Of Rout
The Turkish lira rallied, as the currency found its footing following two days of intense selling after the country's central bank pledged to provide liquidity in response to a meltdown which has unsettled global markets.
Investors were also comforted by news that Finance Minister Berat Albayrak would hold a conference call with investors from the U.S., Europe and the Middle East on Thursday, his first since assuming the post almost two months ago.
The lira rose by as much as 8% to 6.4172 against the dollar, before pulling back slightly to 6.5440, still up 5% for the day (USD/TRY).
The struggling currency sank to an all-time low of 7.1289 on Monday amid growing concern over a deepening diplomatic rift with the United States over Ankara's detention of Andrew Brunson, an American pastor detained in 2016.
Turkish authorities accuse Brunson of supporting a failed coup attempt earlier that year.
2. Global Stocks Rise As Turkish Crises Eases
In equities, global stocks were higher, as investors cautiously returned to risk markets amid a stabilization in Turkey's currency crisis.
On Wall Street, U.S. stock futures looked set to open higher.
The blue-chip Dow futures indicated a gain of 80 points, or around 0.3%, by 5:39AM ET, the S&P 500 futures tacked on 10 points, or around 0.4%, while the tech-heavy Nasdaq 100 futures pointed to a rise of 37 points, or roughly 0.5%.
Meanwhile, in Europe, the region's major bourses bounced back after two days of heavy selling as investors' anxieties over contagion from a Turkish currency crisis eased.
Earlier, Asian shares closed mixed, as some regional markets bounced back one day after declining over jitters related to economic uncertainty in Turkey.
Greater China markets declined, lagging their regional peers, as Chinese economic data highlighted concern surrounding a global trade war.
3. Home Depot Reports Earnings
As earnings season draws to a close, Home Depot (NYSE:HD) is one of the last notable names slated to report fiscal first-quarter results before U.S. markets open.
The home improvement retailer is expected to report earnings of $2.84 per share on revenue of $30.0 billion, according to estimates.
Comparable-store sales are expected to rise 6.5% during the quarter.
Investors will be closely watching the results for comments on the health of the U.S. housing markets and a view of general consumer confidence in the economy.
Home Depot kicks off a busy week of retail earnings; results from Macy's (NYSE:M) are on the agenda for Wednesday; while Walmart (NYSE:WMT), the world’s largest retailer, is due to report results on Thursday.
4. Dollar Holds Near 13-Month Peak
Away from equities, the U.S. dollar was a touch firmer, holding near its best level since June 2017.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 96.23, after climbing to a 13-month high of 96.39 on Monday.
The yen was lower against the dollar, with USD/JPY rising to 111.00, off a 1-1/2-month low of 110.10 touched on Monday.
The euro dipped to 1.1395 against the dollar, within sight of a 13-month low of 1.1365 touched on Monday.
Elsewhere in foreign exchange markets, most emerging market currencies enjoyed a bounce, with South Africa’s rand (USD/ZAR) and Russia’s ruble (USD/RUB) trading higher in sympathy with the Turkish Lira.
5. Bitcoin Dips Below $6,000 Amid Cryptocurrency Sell-Off
Cryptocurrencies plunged, with Bitcoin tumbling below $6,000 for the first time since June.
The world's most valuable digital currency was last down around 7%, or $450, at $6,025.70 (BTC/USD) on the Bitfinex exchange, after falling to as low as $5,858.60, a level last seen on June 29.
Rival tokens also fell.
Ethereum, the world’s second largest cryptocurrency by market cap, was down 20% at $265.58, its worst level since September 2017.
Meanwhile, Ripple's XRP token was trading at $0.26204, down roughly 16% for the day, while Litecoin was down 17% at $51.57.
The latest rout among digital coins came amid disappointment over the postponement of a bitcoin exchange-traded fund (ETF) proposed by VanEck and Solid X earlier this month.