Market Developments: Current Analysis as of December 8, 2025

New Developments in the Markets: Current Analysis for December 8, 2025

Risk appetite in global markets continued to show an optimistic trend as the past week came to a close. U.S. indices prepared for the new week with positive closures. Especially the softening seen 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 with his statement, "It's time for the Fed to take more cautious steps and make interest rate cuts." The S&P 500 index finished the week with a 0.3% increase, particularly driven by strong performances in energy and technology stocks. 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 potential for regulatory hurdles in the merger caused a decline in Netflix shares, while Warner Bros shares took a positive turn. The President of the United States stated that he will also 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 the core PCE fell to 2.8%. This situation supports the possibility of a 25 basis point cut at Fed's meeting this week. The ongoing weakness in employment strengthens these expectations.

Observations in Currency and Gold Markets

The weakening of the dollar index continues; especially in emerging market currencies, a sense of relief is observed. EUR/USD continues its attacks towards the resistance level of 1.1650, presenting a significant outlook in the medium term. Gold prices continue to trend upwards with increasing expectations regarding the Fed.

Borsa Istanbul's Benchmark Index Performance

Borsa Istanbul closed the week above 11,000 points, entering a phase where uncertainties being followed were somewhat reduced. On Friday, the BIST 100 index opened at 10,924 and rose to 11,016 points during the day, finishing at 11,007 with a 0.81% increase. It is noteworthy that the trading volume was below the weekly average.

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 for the week is the Fed's and the Central Bank of Turkey's monetary policy decisions. These decisions are expected to be decisive in the pricing in the markets.