Market Developments: Current Analysis as of December 8, 2025

Market Developments: Current Analysis as of December 8, 2025

Risk appetite in global markets continued to show an optimistic trend as the end of last week approached. U.S. indices prepared for the new week with positive closes. Especially the easing observed 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 emphasized this perception with the statement, "The time has come for the Fed to take more cautious steps and to cut rates." The S&P 500 index finished the week with a 0.3% increase, particularly strong performances were seen 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 created discussions in the markets. The potential for regulatory hurdles to block the merger has led to a decline in Netflix shares, while Warner Bros shares took a positive turn. The U.S. President stated that he will play a role in this process.

PCE Data and Economic Outlook

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

Observations on Currency and Gold Markets

The weakening of the dollar index continues in the currency market, with relief being observed especially in emerging market currencies. EUR/USD continues its attempts towards the resistance at 1.1650, presenting an important outlook in the medium term. Gold prices continue to follow an upward trend due to increasing expectations regarding the Fed.

Borsa Istanbul Benchmark Index Performance

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

Favorite Stocks in Financial Markets

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.

This week's critical agenda includes the Fed's and the Central Bank of the Republic of Turkey's monetary policy decisions. These decisions are expected to be decisive in the pricing in the markets.