Turkish authorities have frozen trading in funds run by seven asset managers and ordered 130 funds to be liquidated as part of efforts to contain the fallout from a speculative bubble that has shaken the Istanbul stock market. The central bank loosened access to lira liquidity to prevent forced selling, while the capital markets regulator referred 38 people to prosecutors over suspected market manipulation. The market shakeout comes at an awkward moment for Turkey, which is trying to rebuild its international economic credibility under a stabilisation programme led by finance minister Mehmet Şimşek.

Turkish authorities appear to be taking a three-pronged approach to contain the problem, with the central bank easing lending requirements, the Capital Markets Board halting trading of funds from specific firms, and authorities attempting to isolate household savings through a Treasury-backed bailout. The last time the Financial Stability Committee called an emergency meeting was in May, after a court removed the leadership of Turkey's largest opposition party. Assets managed by the three troubled groups totalled roughly $29bn.