Turkish markets mixed after Fed, eye inflation report

Katmerciler Arac Ustu Ekipman Sanayi ve Ticaret

30/10/2014 09:22

ISTANBUL, Oct 30 (Reuters) - Turkish markets were mixed on 
Thursday after the U.S. Federal Reserve said it was ending its 
asset purchase program this month as expected and investors 
awaited the Turkish central bank's inflation report on Friday. 
    The central bank kept interest rates on hold last week, with 
inflation seen at almost double its target by year end, and 
repeated its commitment to maintain a tight monetary policy 
until the outlook for prices improved. 
    The move has helped support the lira. 
    Turkey is struggling to control inflation even as its 
economy slows and conflict intensifies in neighbouring 
countries. The government slashed its growth estimates and 
raised its inflation forecast for 2014 and 2015 this month, 
citing an unfavourable global environment.  ID:nL6N0S31EV  
    "We expect the central bank's inflation estimate for 2014 to 
converge to 9 percent, rising from a previous estimate of 7.6 
percent, due to high food inflation and significant depreciation 
in the lira," Odeabank manager Inanc Sozer said in a note. 
    The lira  TRYTOM=D3  was stronger at 2.2240 against the 
dollar by 0825 GMT, from 2.2279 late on Tuesday. The currency 
strengthened as far as 2.19 against the dollar on Wednesday, but 
reversed those gains after the Fed meeting. 
    Istanbul's main share index  .XU100  was up 0.45 percent at 
79,957.65, outperforming the broader emerging markets index 
 .MSCIEF , which was down 0.59 percent. 
    The 10-year benchmark bond yield  tTR240724T0=IS  slipped to 
8.86 percent from 8.76 percent on Tuesday.     
    Shares in Katmerciler  KATMR.IS  rose 10.25 percent to 3.55 
lira after the company said it was awarded a 13.68 million euro 
($17.20 million) contract to provide water cannon vehicles for 
the Turkish police. 
    Markets will also be monitoring third-quarter gross domestic 
product data in the U.S. and Fed Chair Janet Yellen's speech 
later on Thursday. 
    (1 US dollar = 0.7955 euro) 
 
 (Reporting by Seda Sezer; Editing by Nick Tattersall and Toby 
Chopra) 
 ((seda.sezer@thomsonreuters.com; +90 212 3507122; Reuters 
Messaging: seda.sezer.reuters.com@reuters.net)) 
 
Keywords: MARKETS TURKEY