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

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

Risk appetite in global markets continued to show an optimistic trend towards the end of the past week. U.S. indices prepared for the new week with positive closures. 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 Adviser 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 completed the week with a 0.3% increase, with energy and technology stocks performing particularly well. On the other hand, utility stocks faced pressure after Exelon's bond issuance.

Netflix and Warner Bros Merger Sparks Debate

Netflix's plan to acquire Warner Bros for $72 billion sparked discussions in the markets. The potential regulatory hurdles for the merger caused a decline in Netflix's shares, while Warner Bros shares moved in a positive direction. The President of the United States stated that he would also play a role in this process.

PCE Data and Economic Outlook

The PCE data announced last week presented a mixed picture. The headline inflation rate rose to 2.8% on an annual basis, while core PCE decreased to 2.8%. This situation supports the likelihood that the Fed will implement a 25 basis point rate cut at its meeting this week. The ongoing weakness in employment strengthens these expectations.

Observations on the Currency and Gold Markets

The weakening of the dollar index in foreign exchange continues; especially, there is a relaxation observed in emerging market currencies. EUR/USD continues its ascent towards the 1.1650 resistance level, presenting a significant outlook in the medium term. Gold prices continue to follow an upward trend with increasing expectations regarding the Fed.

Performance of the Istanbul Stock Exchange Benchmark Index

The Istanbul Stock Exchange entered a phase where the uncertainties being monitored were somewhat alleviated, closing the week above 11,000 points. On Friday, the BIST 100 index opened at 10,924 and reached 11,016 points during the day, finishing 0.81% higher at 11,007. It was noteworthy that the trading volume remained below the weekly average of the past week.

Stocks Favored in Financial Markets

Among the stocks with strong technical performance 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. It is anticipated that these decisions will be decisive for pricing in the markets.