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Protests Sending Turkey ETF Plunging

Shares of Turkey ETF iShares MSCI Turkey Invest Mkt Index (NYSE: TUR) were down 2.5 percent in late afternoon trading after protests intensified in Istanbul, Turkey.

It all started when Turkish Prime Minister Recep Tayyip Erdogan, traveled to the White House in May. Erdogan and Obama talked about the escalating nuclear problem in Iran, stabilizing Iraq, and violence in Syria. Turkey is a key US ally in its fight against global terror.

Erdogan might be the cause of the continued escalation. Known for his brash and direct style, he publically questioned the legitimacy of the protesters and told them that his patience was running out. Police in riot gear fired tear gas, rubber bullets, and flash grenades but much like Greece, government action was serving only to escalate the violence.

The iShares MSCI Turkey Invest Mkt Index is down nearly 18 percent this month based on the escalating tensions between Turkish citizens and the government.

As a result of the protests, tensions have mounted between Washington and Istanbul. “We continue to have serious concerns about the reports of excessive use of force by police and large numbers of injuries and damage to property, and welcome calls for these events to be investigated,” said James Jaffrey, who served as Obama’s adviser to Turkey.

Disclimer: At the time of this article, Tim Parker had no position in the ETF mentioned above.

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