Things to Consider at Market Opening - December 5th

Things to Watch in Market Opening – December 5

While global markets struggle to find a clear direction in risk appetite, important data is emerging for investors. Yesterday, the weekly jobless claims in the U.S. were announced at 191,000 against an expectation of 220,000, revealing the strength of the labor market; however, the data left limited effects on pricing due to fluctuations related to the Thanksgiving week.

Mixed Outlook in U.S. Markets

A surprising decline in ADP private sector employment signaled a slowdown in the labor market, leading to a continued weakness in the dollar index. In line with these developments, U.S. indices fluctuated within a narrow band, with the S&P 500 closing slightly higher, while the Nasdaq 100 had a flat closing.

European and Eurozone Data

The upward revision of Eurozone composite PMI data and the divergence of expectations between the Federal Reserve and the European Central Bank drove the EUR/USD parity up to 1.165. Today, the core PCE inflation and personal income-consumption data, which will be released later in the U.S., will be closely monitored.

Asian Markets and Japan

In Asia, the picture is mixed; weak consumption data in Japan has triggered expectations that the BOJ is closer to raising interest rates, increasing inflationary pressures. This situation caused sudden sell-off waves in the Nikkei index.

China and Artificial Intelligence Producers

China’s artificial intelligence GPU producer Moore Threads gained nearly four times in value on its first trading day following a $1.1 billion IPO, refreshing sentiment towards global technology stocks. How this development will impact major tech companies like Nvidia in the long term is being closely watched.

Turkish Markets and BIST 100

Despite the domestic inflation figures for November falling below expectations, the BIST 100 closed the day with a decline of over 1% due to profit-taking. The index was trading at 10,918 points under pressure from banking stocks but showed a slight positive divergence with industrial stocks. However, the mining sector showed the strongest increase.

General Trend in Markets

A retreat in short-term bond yields continues with declining inflation and expectations of interest rate cuts. USD/TRY is heading back towards the 42.50 level, while the foreign trade deficit also rose by 4% to $7.8 billion. Additionally, today the Treasury cash balance will be announced, and an increase in market volatility is expected.