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Court Ruling on Jailed U.S. Pastor Sends Turkish Assets Tumbling

  • Gains fueled by speculation Brunson would be set free erased
  • Ruling raises prospect of U.S. sanctions on NATO ally Turkey
Daily Life Ahead Of President Erdogan's Inauguration
Photographer: Kostas Tsironis/Bloomberg
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A court ruling to extend the almost two-year-long imprisonment of an American pastor raised the prospect of unprecedented sanctions by the U.S. Congress against NATO member Turkey, and sent the nation’s markets tumbling.

The Turkish currency reversed earlier gains on the ruling, while yields on benchmark government bonds rose and stocks slumped. Turkish assets had been rallying on optimism that Andrew Brunson, whose jailing is a key source of tension between the allied countries, would be set free or deported at the hearing on Wednesday.