Turkey’s markets wobble, Russians head to the polls

The stress experienced by some Turkish investment funds this week appears to have been contained, but it has exposed Turkey’s sensitivity to a reversal in foreign capital flows. An interest rate cut in October is not a done deal. Meanwhile, Russians begin voting in parliamentary elections today in which United Russia is expected to retain its constitutional majority. While the outcome is a foregone conclusion, the focus will be on turnout and regional voting patterns for clues on public sentiment. The vote is likely to be followed by less supportive fiscal policy in the upcoming 2027 budget.