This of course stems directly from Erdogan’s ongoing efforts to bring arch nemesis Fethullah Gulen to “justice.” Pretty much anything that goes wrong for Erdogan gets blamed one of two things: 1) a Kurdish conspiracy, 2) a Gulen-linked conspiracy. This latest spat with Washington is no exception.
The tough thing about a market dominated by geopolitical concerns is that geopolitics is country- or at least region-specific. There’s nuance, idiosyncrasies, thousands of years of history peculiar to this country or that, religious undercurrents, etc., etc. You have to take all of that into account when trying to make sense of markets in the context of multiple geopolitical powder kegs.