Critical Developments You Need to Know Before the Market Opens

Market Analysis and Important Developments

Geopolitical risks and decisions made by central banks continue to be influential in global markets. The U.S. seizing a Venezuela-linked oil tanker, combined with uncertainties in the Middle East, has increased investors' search for safe havens. This situation has led to a rise in oil prices, with Brent crude rising above $60, while WTI tested the $57 band.

Increase in Precious Metals

Under a similar risk perception, precious metals have also gained value. During the Asian session, gold approached $4,500 per ounce, reaching new record levels, while silver began to challenge the $70 threshold. This situation is increasing investors' interest in precious metals.

U.S. Economy and Growth Data

In the U.S., inflation data released last week was below expectations, whereas strong earnings from major technology companies reinforced risk appetite. U.S. indexes started the week positively, particularly in industrial, financial, raw material, and energy stocks. However, low trading volumes have drawn attention due to the holiday week. Today's third-quarter growth data, core PCE, and daily durable goods orders are closely monitored by investors.

Asian and European Markets

In Asia, the decline of the Japanese yen is noteworthy. Japanese officials reacted to this drop in the yen's value, with the USD/JPY pair falling to around 156. European markets are following a more subdued course due to the Christmas week. The European Central Bank's (ECB) upward revisions on inflation and growth forecasts, as well as expectations regarding defense-infrastructure spending, remain important in the medium term.

Developments in Domestic Markets

The BIST 100 index closed the first trading day of the week at 11,311 points with a limited loss. The trading volume realized at around 134 billion TL was remarkable. Financial leasing and factoring stocks showed strong increases, while brokerage firm stocks faced selling pressure. The banking index continued its upward trend. In the short term, the markets are expected to fluctuate around technical levels as there is no significant news flow.