Signs of new momentum in Turkey’s protracted talks with the International Monetary Fund prompted a rally in Turkish assets on Friday, after the IMF’s deputy director said there was a “great convergence of views” on the challenges its economy faced.

John Lipsky met with Ali Babacan, Turkish economy minister, for four hours at a conference in the resort of Bodrum. Mr Babacan, who had earlier quelled speculation that a deal was imminent, told reporters talks would continue over the coming weeks.