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As the Turkish tumult continues and Russia’s rout rolls on, U.S. assets stay relatively sanguine. Here are some of the things people in markets are talking about.

Turkey, Russia Selloffs Get Worse

The Turkish lira tumbled, sinking to a fresh record low as concern about souring relations with the U.S. and runaway inflation outweighed the nation’s plans to stem a market rout. The lira sank more than 5 percent, while the iShares MSCI Turkey ETF extended a two-day plunge. The  ruble sank for a second day as well, as a fresh round of U.S. sanctions against Russia deepened concern about what could be targeted next. Investors who had been building long positions in the currency earlier in the summer rushed for the exit, and analysts at Citibank said it looks like traders were already pricing in a worst-case scenario of sanctions on banks and new sovereign debt.

U.S. Markets Defy Global Chaos

The S&P 500 has been edging back toward its January peak, and the U.S. Treasury just auctioned a record amount of 10- and 30-year debt with relative ease. Looking at American markets, there’s little sign of the angst that’s been roiling emerging economies. And some American assets may even benefit from the volatility abroad. To the likely dismay of President Donald Trump, the dollar is widely seen as a winner should tit-for-tat protectionist measures push investors to seek a haven. That pattern was at work on Thursday as Treasuries and the greenback advanced. The S&P 500 was in the green most of the session, only to fade into the close and finish down 0.1%. “It’s just a strange and disconcerting world that we live in, yet the U.S. equity market and the U.S. economy just keep chugging along.” independent strategist Marty Mitchells said in his daily newsletter Thursday. In fact, Wall Street’s biggest bull sees the S&P rising 12% by year-end.

Equity Angst Grows in China

Chinese stocks haven’t been this volatile in years as traders struggle to decide whether the $6 trillion market has bottomed out. Buffeted by crosscurrents ranging from the  trade war and rising defaults to monetary stimulus and cheapening valuations, the Shanghai Composite Index has recorded seven straight swings of 1 percent or more— the longest such stretch since Chinese markets crashed in 2015. Intraday moves in the index have grown the most extreme in 30 months, while the country’s market capitalization fluctuated by at least $97 billion for six consecutive trading sessions through Wednesday. “There is no consensus,” said Steven Leung, an executive director at Uob Kay Hian (Hong Kong) Ltd. “In these circumstances, lots of investors in China have turned into short-term investors.”

America’s Growing Crude Clout Spares Tariffs

The removal of U.S. crude from goods targeted by Chinese tariffs is a sign that America has become too big to ignore in the oil market. Less than two months after threatening to impose levies on imports of U.S. crude, the world’s biggest oil buyer has now spared the commodity. Only fuels such as diesel, gasoline and propane will be hit with duties on Aug. 23. That’s after the nation’s buyers, including top refiner Sinopec, began shunning American supplies to avoid the risk of tariffs. China’s original plan to target U.S. crude came at an inopportune time for the country’s buyers, with Sinopec’s trading unit embroiled in a dispute with Saudi Arabia and amid supply disruptions from Iran and Venezuela. “The U.S. has been and will remain the main source of incremental crude production globally,” said Den Syahril, an analyst at industry consultant FGE.

Coming Up...

It’s a busy day for economic data, with Japan’s second-quarter GDP report topping the agenda. The country is expected to post a rebound from the first quarter’s contraction. The RBA will release its quarterly statement on monetary policy, and China may report money supply figures. We also Singapore retail sales, Hong Kong GDP, and industrial production for Malaysia and India. In the U.S., the CPI report looms large.

What we’ve been reading

This is what caught our eye over the last 24 hours.

• China’s exporters are homeward bound.
• Samsung unveiled its priciest phone yet to fend off the threat from Apple’s upcoming iPhones. Samsung also struck a deal with Spotify to fight off Apple Music.
• The world of Crazy Rich Asians is as crazy IRL.
• Will you eat the hamburger of the future?
• Not even fruit bowls are safe in Deutsche Bank’s bid to cut costs.
• Tesla’s buyout euphoria has worn off.

To contact the editor responsible for this story: Boris Korby at bkorby1@bloomberg.net

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