Charting the Markets: Risk Assets Drop After Turkey Shoots Down Russian Plane

Global stocks are falling for a second session after after five days of gains. The clock is ticking to the Federal Reserve's Dec.15-16 monetary policy meeting. In a letter released yesterday Fed Chair Janet Yellen repeated she expects to tighten policy "gradually" after liftoff. Odds of a move next month have risen to 74 percent from 36 percent a month ago, according to Bloomberg data. The increased likelihood of a hike is underpinning the dollar, which is near a 10-year high against its ten leading peers, and weighing on commodities.

The lira fell after a Russian jet was shot down at the Turkey-Syria border, with Turkey alleging the warplane violated its airspace. Russia's Micex Index sank as much as 1.9 percent, its biggest drop in two months. Relations between Turkey and Russia have strained over Russian intervention in Syria, reinforcing President Bashar al-Assad. Turkey backs rebels seeking Assad's ouster. The lira is the world's third-worst performing emerging market currency this year, plunging 19 percent.