SYDNEYLONDON, March 22 Reuters The fallout from Turkeys latest market drama appeared contained on Monday, as stocks and emergingmarket currencies recovered from President Tayyip Erdogans shock replacing of a hawkish central bank governor with a critic of high interest rates.

Indexes tracking Europes 600 largest stocks, emergingmarket shares, and emergingmarket currencies all stayed near flat as investors bet contagion would be for now limited.

Erdogans third ousting of a central bank governor since 2019 mostly affected domestic assets.

The lira fell 15 to 8.485 against the dollar, its worst plunge since the last Turkish crisis of 2018, before the currency recovered on calming words from Finance Minister Lutfi Elvan.

By 1217 GMT, the currency traded at 7.927 after Elvan said Turkey would stick to freemarket rules, damping down fears of currency controls.

We dont see any contagion risk to the rest of emerging markets, its been shown time and time again that the lira is its own story, said John Hardy, head of foreign exchange strategy at Saxo Bank.

Turkish sovereign bond yields soared above 18, hitting a 22month high.

Euro zone banks exposed to the country such as Spains BBVA , Italys UniCredit, Frances BNP Paribas , and Dutch bank ING fell between 1.6 and 6.

The ripples were more modest elsewhere. U.S. stock futures were up while yields on 10year Treasury notes edged down five basis points to 1.68, suggesting some investors favoured safe havens.

Futures tracking…