Market Analysis: Key Developments on December 12

Things You Need to Know Before the Market Opens

In global markets, risk appetite has remained strong in recent days. The Federal Reserve's (Fed) recent decision to cut the policy rate by 25 basis points, bringing it to a range of 3.50%-3.75%, is highlighted as a noteworthy decision. This situation supports pricing as the overall macro outlook presents a more positive picture.

Currency and Bond Market Analysis

The weakening of the dollar index following the Fed's decision has increased demand for risky assets worldwide. While U.S. Treasury yields have declined, the 10-year Treasury yields have fallen to around 3.1%, and the short-term benchmark Treasury has dropped to levels around 3.9%, supporting market dynamics.

Index Divergence and Sector Developments

A divergence has been observed among U.S. stock indices. The Dow Jones finished the day with gains of over 1%, while the S&P 500 hovered near new peak levels. The technology-heavy Nasdaq closed the day with limited losses due to concerns regarding Oracle’s financing quality in AI-related expenditures. Another noteworthy development is Disney's licensing agreement with OpenAI and its $1 billion investment plan.

Commodity and Geopolitical Developments

In the commodity sector, silver tested above $64 following the dollar's depreciation after the Fed's decision. This week, gold has found support. Expectations for Europe are shaped by the UK’s growth figure rising by 0.1% and Germany's monthly CPI remaining in negative territory at -0.2%.

Turkey Market Developments

The BIST 100 index continued its upward trend after the Central Bank of the Republic of Turkey's (TCMB) interest rate cut cycle. The index surpassed the previous peak, breaking the 11,160 resistance level and establishing durability; this creates an environment that reaffirms a rising trend.

Despite the banking index struggling around 16,500 in recent days, maintaining above the 16,180 support level provides a positive outlook. Certain data releases are expected today, such as the October current account balance and the TCMB Market Participants Survey. Additionally, VIOP has started the morning session with a rise of 0.31%.