Turkish lira, airline stocks drop on reports Turkey "downed Russian jet" near Syrian border

Media reports that the Turkish military have shot down a Russian-made plane near the Syria border are weighing on the markets.

The Turkish lira has taken a hit, weakening to 2.87 lira to the US dollar, from 2.845.

USD/TRY is currently trading at 2.8663, up 0.61%.

Elsewhere, European markets turned red with German DAX losing 0.91% and France's CAC down 1.29%.

British FTSE 100 lost 0.85%. On FTSE 100, airline stocks have fallen with easyJet down 3.31% and IAG (British Airways’ parent company) down 3%. Ryanair lost 2.95% and Wizz Air was down 0.89%.

Turkey said its fighter jets have shot down a warplane near the Syrian border after it violated Turkey’s airspace. The country' military said in a statement the jet was warned 10 times in the space of five minutes over airspace violations before it was shot down by F-16 fighter jets.

Some officials said the plane was a Russian-made SU-24. Russia’s defence ministry said the downed fighter jet was Russian and did not violate Turkish airspace, the RIA news agency reported.