Turkey markets mixed, awaiting foreign data

ISTANBUL, Feb 7 (Reuters) - Turkish markets were steady on the day in Thursday's first trading session as investors awaited a series of foreign data and interest rate decisions, which will set the short term market tempo for Turkey.

The main share index .XU100 fell 0.17 percent to 43,241 points, while the lira <IYIX=> softened to 1.1920 against the dollar from Wednesday's interbank market close of 1.1855.

Bonds were unchanged on the day as the yield on the benchmark Oct. 7, 2009 bond <TRTSYSUM=IS> was at the previous day's close of 16.59 percent.

"Markets are very cautious ahead of weekly jobless claims and the monthly December housing forecast coming from the United States today. The data is crucial to the health of the (U.S.) economy and will determine the direction of the market," said Derya Tanriverdi of Tacirler Securities.

More than 75 percent of Turkey investors are foreign and global market moves have a greater impact on the financial markets of Turkey, which is dependent on global market liquidity.

"There is also the Bank of England rate decision today, where a 25 basis point rate cut is expected. If there is a cut we could see some upward movement in markets later today," she said.

But insurance shares .XSGRT bucked the trend for the second straight day, rising 2.91 percent by 0856 GMT after France's AXA (AXAF.PA: Quote, Profile, Research) on Wednesday agreed to buy its local partner Oyak out of their insurance joint venture for $525 million.

Meanwhile the Treasury will hold two swap auctions on Thursday. It will buy back Aug. 13, 2008 and July 16, 2008 paper and also reissue the benchmark Oct. 7, 2009 bond.

Turkey's main macroeconomic weak spot is its large current account deficit, which is partly financed by foreign portfolio investment, and is at risk if global liquidity dries up.