Turkish markets slip ahead of U.S. jobs data

ISTANBUL, Sept 5 Fri Sep 5, 2014 4:13am EDT

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ISTANBUL, Sept 5 (Reuters) - Turkish assets slipped on Friday, reversing gains driven by unexpected euro zone easing, as the focus turned to U.S. jobs figures which could help prompt monetary tightening in the world's biggest economy.

Turkey is especially sensitive to changes in global liquidity conditions because of its large current account deficit, which is financed with foreign capital inflows.

Istanbul's main share index was down 0.23 percent at 82,039 points by 0737 GMT, outpacing the 0.4 percent fall in the broader emerging markets index.

The benchmark 10-year government bond yield rose to 9.09 percent from 9.04 on Thursday and the lira weakened to 2.1668 against the dollar from 2.1555.

Shares, bonds and the lira gained on Thursday after the European Central Bank (ECB) defied the consensus and cut its benchmark interest rate to a record 0.05 percent.

But across the Atlantic, data provided fresh evidence that the U.S. economy was on track for sturdy growth in the third quarter. Companies hired workers at a steady clip in August and service sector activity accelerated to 6-1/2-year high.

U.S. jobs data at 1230 GMT will be watched closely by emerging markets with expectations that the unemployment rate fell to 6.1 percent.

"The ECB rate cut came as a surprise to economists but traders were in position before the announcement, so now there is some profit-taking," Tufan Comert, strategist at Garanti Bank said.

"Secondly, there is an ongoing concern in the market that the United States data may exceed expectations, increasing the likelihood of an earlier interest rate hike." (Reporting by Dasha Afanasieva; Editing by Daren Butler and Sonya Hepinstall)

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