Financial markets looked to put Turkey shooting down a Russian fighter jet earlier this week behind them, with European stocks moving higher and oil prices reversing an overnight rise to fall 1 percent. Ivor Bennett reports.
Images that make markets shiver. Fallout from the downing of a Russian jet by Turkey was almost instant. Oil prices hitting a two week high. European stocks going in the other direction. But 24 hours on, it's business as usual, says IG's Chris Beauchamp. SOUNDBITE (English) CHRIS BEAUCHAMP, SENIOR MARKET ANALYST, IG, SAYING: "Obviously the general macro backdrop, the expectation of more ECB easing, and the fact that it is Thanksgiving week and we do tend to see markets go up in the period before that holiday, means that I think we're seeing buyers returning to the fray after yesterday's weakness." Oil prices slumped 1 percent in early trading, while the FTSE rose 0.8 percent. European markets viewing the reaction from Moscow as relatively muted. But in Turkey, it's considered anything but. The threat of economic sanctions has seen shares there hit six-week lows. The lira also extending Tuesday's losses. SOUNDBITE (English) CHRIS BEAUCHAMP, SENIOR MARKET ANALYST, IG, SAYING: "It's undoubted that if they really decided to go all out on economic sanctions, and other moves, then you would have an impact on Turkey's economy. They're already talking about the potential deals that might be pulled as a result of this. But really, I think the Russians and the Turks, while they will talk about it, it will be difficult to see how this will persist over the longer term. Both sides have too much to lose to have a real fall-out." Energy is a prime example. Turkey imports 60 percent of its gas and a third of its oil from Russia For whom, there's a 20 billion dollar nuclear power deal at stake. But when a war of words begins, who knows where it will end?