Tuesday morning, NATO forces in Turkey pranged a Russian plane, Su-24, which was performing its operation in Syria bombing strategic points of ISIS. Despite Moscow and Ankara having different views on whether the plane crossed the Turkish border, no one rejects the fact that the pilots have been multiply informed to change the course.
The situation with number of injured and killed remains unclear after the accident. According to the Turkish officials, two people were injured by the falling plane. Russian officials inform about helicopter raid patrol seeking for the two pilots who catapulted, whilst other sources report at least one of them already killed.
The western and eastern parties seemed to find some common ground over the operation in Syria. Moreover, after the acts of terrorism in Paris, the French president decided to start this week with visits to Washington and Moscow to form a coalition with closely coordinated actions against ISIS. The sudden conflict between the two parties closely involved in anti-Islamic coalition has instantly resulted in negative political and economic consequences.
Russian Stock Market index MICEX fell by 3.3% in one day to 1806 from 1867 – the maximum last reached four years ago. According to Al Arabia, the BIST 100 index, the broadest measure of Turkish stock dynamics, sank by 1.4 percent during Tuesday morning.
The Turkish lira fell from 2.846 TRY/USD to 2.874 in less than two hours. The Russian rouble also lost the ground, decreasing close to monthly minimums at 66.2. Both stocks and currencies regained their positions slightly towards the end of the trading session, which was most likely caused by closing of short positions rather than any kind of market optimism.
Not only the involved countries have experienced a fall in stock markets. From the political processes described earlier, it is clear that the conflict brings lots of doubts and instability into the process of confronting the radical Islamic state. This, undoubtedly, raises fears about further security issues in main European cities, as well as around the whole world.
This pessimism mirrored in European stock markets today, with all major indices scoring red at the end of the financial day. The pan-European STOXX 600 finished down over 1.3 percent. French stock markets were predictably most sensitive to the news, with major indices sliding down approximately by 2.2%. The effect over the Atlantics was weaker, although the heaviness of stocks at the beginning of the financial day was sensible.