Turkish Stocks Surge Following Court Dismissal of Opposition Party Case

A Turkish court dismissed a case against the main opposition Republican People's Party (CHP) over alleged electoral fraud during its 2023 national congress, ruling the accusations baseless. This verdict boosted investor confidence, leading to a sharp rally in Turkish markets, with the Borsa Istanbul's blue-chip index climbing nearly 5% and the banking sector seeing significant gains. The Turkish lira also strengthened against the dollar, and Turkey's international dollar bonds rose, reflecting eased political tensions after a prolonged legal crackdown on the CHP. Despite this positive market response, political uncertainty remains as CHP mayors, including Istanbul's Ekrem İmamoğlu, face ongoing charges, complicating the opposition's future. The court's decision reassured investors about judicial independence amid concerns linked to President Erdogan's administration and has helped stabilize local markets after substantial capital outflows earlier in the year. Additionally, Turkey's defense sector contributed to recent market support amid rising geopolitical tensions in Europe.