Traders work on their computers at the Istanbul Stock Exchange January 2, 2012. REUTERS/MURAD SEZER
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While angry exchanges between Germany and Turkey have pushed diplomatic relations between the countries to new lows, Istanbul stock investors appear confident the feuding will be limited to verbal jousting.There are reasons for investors to remain calm: Germany is the No. 1 destination for Turkish exports, while a refugee deal with the European Union sees Turkey house refugees, mainly from Syria, in return for billions of euros in aid and the prospect of EU membership.Relations between the two countries have turned more hostile since Turkey arrested a German-Turkish journalist at the end of February. Germany refused to allow Turkish government ministers to campaign for the votes of expatriates before a referendum in mid-April that handed President Recep Tayyip Erdogan sweeping powers.
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