Market Previews to Consider: November 7 Analysis

Important Agenda Items Before the Market Opens

While fluctuations continue in global markets, increased selling pressure on artificial intelligence-focused technology stocks in the U.S. is particularly noteworthy. This situation, combined with data indicating a cooling employment market, has heightened investor concerns.

General Outlook for the U.S. Market

Major stock indices in the U.S. wrapped up the day with losses, with the S&P 500 down 1.1%, Nasdaq down 1.9%, and Dow Jones down 0.8%. However, index futures are planning to start the day positively. According to data from Challenger, Gray & Christmas, the number of layoffs in October reached 153 thousand, the highest level in the last 22 years. Most layoffs were attributed to artificial intelligence applications and automation.

Expectations for Monetary Policy

These developments are also affecting expectations regarding the Fed’s monetary policy. The U.S. 10-year Treasury yield has decreased to 4.08%, raising the probability of a 25 basis point rate cut in December from 60% to 69%, while the U.S. dollar index has fallen below 100. Additionally, although the U.S.'s new tariff decisions towards China triggered a short-term currency movement, expectations of potential easing by the Fed limited this rise.

Messages from the Bank of England

The Bank of England has decided to keep its policy rate stable at 4%. President Bailey indicated that the upside risks to inflation have weakened, stating that current policies could allow for three rate cuts by 2026.

Situation in the Commodity Market

In the commodity sector, gold prices are showing an upward reaction after recent correction movements. The uncertainty created by additional tariffs the U.S. imposed on China and the government shutdown is increasing demand for safe havens. Current prices are fluctuating in the range of $3,880-$4,050.

Rising Trend in Borsa Istanbul

In Borsa Istanbul, the BIST 100 index closed the day up by 0.94%, reaching 11,073. Increased purchases in banking shares supported this performance of the index, strengthening the effort to surpass the 11,000 resistance level. The short-term support level stands out at 10,800.

Important Earnings Announcements

As of today, the earnings results of Turkish Airlines, Vakıfbank, and Migros are eagerly anticipated by investors. Turkish Airlines is expected to report a net profit of 56 billion TL, while Vakıfbank is projected to announce a net profit of 11.9 billion TL, both exceeding market expectations.

Conclusion for Investors

The transition of foreign investors to stock purchases after a long hiatus may affect the market direction, while the Central Bank of the Republic of Turkey's presentation of the Inflation Report is also a significant agenda item to consider today.