Market Developments: December 8, 2025 Current Analysis

New Developments in Markets: December 8, 2025 Current Analysis

Global market risk appetite continued to follow an optimistic path towards the end of last week. U.S. indices prepared for the new week with positive closures. In particular, the softening in the employment sector has increased expectations for interest rate cuts by the Federal Reserve (Fed).

Fed Interest Rate Cut Expectations Strengthen

White House Economic Advisor Kevin Hassett reinforced this perception by stating, "The time has come for the Fed to take more cautious steps and to cut interest rates." The S&P 500 index finished the week up by 0.3%, with energy and technology stocks performing strongly. On the other hand, utility stocks came under pressure following Exelon's bond issuance.

Netflix and Warner Bros Merger Raises Discussions

Netflix's plan to acquire Warner Bros for $72 billion sparked discussions in the markets. The potential for regulatory hurdles in the merger led to a decline in Netflix shares, while Warner Bros shares experienced a positive trend. The U.S. President stated that he would also play a role in this process.

PCE Data and Economic Outlook

The PCE data released last week painted a mixed picture. The headline inflation figure climbed to an annual rate of 2.8%, while core PCE fell to 2.8%. This situation supports the possibility of a 25 basis point cut in the Fed's meeting this week. The ongoing weakness in employment strengthens these expectations.

Currency and Gold Market Observations

The weakness in the dollar index continues; particularly, some relief is observed in emerging market currencies. EUR/USD continues its attempts towards the resistance level of 1.1650, providing an important outlook in the medium term. Meanwhile, gold prices continue to trend upwards with the increasing expectations regarding the Fed.

Borsa Istanbul's Benchmark Index Performance

Borsa Istanbul entered a phase where uncertainties have somewhat reduced, closing the week above 11,000 points. On Friday, the BIST 100 index opened at 10,924 and rose to 11,016 during the day, finishing at 11,007 with a 0.81% increase. It is noteworthy that the trading volume remained below the average of the last week.

Popular Stocks in Financial Markets

Strongly performing stocks among investors include Gübre Fabrikaları (GUBRF) and Ral Yatırım Holding (RALYH). These stocks are trading above their 9, 21, 50, and 200-day exponential moving averages and are being closely watched by investors.

This week's critical agenda includes the Fed's and TCMB's monetary policy decisions. It is anticipated that these decisions will be decisive for pricing in the markets.