Market Developments: Current Analysis December 8, 2025

Market Developments: Current Analysis as of December 8, 2025

Risk appetite in global markets continued to remain optimistic towards the end of last week. US indices prepared for the new week with positive closes. Notably, the easing in the labor sector has increased expectations for Federal Reserve (Fed) rate cuts.

Strengthening Fed Rate Cut Expectations

White House Economic Advisor Kevin Hassett reinforced this sentiment by stating, "The time has come for the Fed to take more cautious steps and make a rate cut." The S&P 500 index finished the week with a 0.3% increase, 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 Sparks Debate

Netflix's plan to acquire Warner Bros for $72 billion has sparked discussions in the markets. The possibility of regulatory hurdles blocking the merger led to a decline in Netflix shares, while Warner Bros shares took a positive turn. The US President stated that he would play a role in this process.

PCE Data and Economic Outlook

The PCE data released last week presented a mixed picture. The headline inflation figure rose to 2.8% year-on-year, while core PCE dropped to 2.8%. This situation supports the likelihood of a 25 basis point rate cut during the Fed's meeting this week. The continued weakness in employment strengthens these expectations.

Currency and Gold Market Observations

The weakening of the dollar index continues; particularly, relief is observed in emerging market currencies. EUR/USD is pushing towards the 1.1650 resistance, presenting an important outlook in the medium term. Gold prices continue to trend upwards due to rising expectations regarding the Fed.

Borsa Istanbul's Benchmark Index Performance

Borsa Istanbul closed the week above the 11,000-point mark, entering a phase where the uncertainties being tracked have been somewhat alleviated. On Friday, the BIST 100 index opened at 10,924, rising to 11,016 during the day and completing the session at 11,007 with a 0.81% increase. The trading volume being below the weekly average caught attention.

Financial Markets' Favorite Stocks

Among the stocks with strong technical outlooks are 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 monitored by investors.

The critical agenda of the week is the Fed's and TCMB's monetary policy decisions. These decisions are expected to be decisive in the pricing in the markets.