Market Analysis: Notable Developments on December 12

What You Need to Know Before the Market Opens

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

Currency and Bond Market Analysis

The weakness recorded in 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 yield has fallen to around 3.1%, and the short-term benchmark yield has decreased to 3.9%, supporting market dynamics.

Divergence in Indices and Sectoral Developments

A divergence was observed among U.S. stock indices. The Dow Jones closed the day with gains of over 1%, while the S&P 500 traded near new peak levels. The technology-heavy Nasdaq closed the day with limited losses due to concerns about Oracle's financing quality in its artificial intelligence spending. Another significant development was Disney's licensing agreement with OpenAI and its plan for a $1 billion investment.

Commodity and Geopolitical Developments

On the commodity side, silver tested above $64 following the Fed's decision and the dollar's depreciation. In the current week, gold has found support. Expectations regarding Europe are shaped by the 0.1% increase in the UK's growth data and Germany's monthly CPI staying in the unchanged negative zone at -0.2%.

Turkey Market Developments

The BIST 100 index continued its upward trend following the Central Bank of the Republic of Turkey's (CBRT) interest rate cut cycle. The index surpassed the previous peak, breaching the 11,160 resistance level, which creates an environment confirming a rising trend.

Although the banking index has struggled around 16,500 in recent days, maintaining above the 16,180 support provides a positive outlook. Certain data is expected to be released today, such as the October current account balance and the CBRT Market Participants Survey. Additionally, the VIOP is starting the morning session with an increase of 0.31%.