ISTANBUL, Sept 5 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
"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