Market Calmness for the New Year: Data Agenda Will Remain Weak

A Calm Entry for Markets Next Week

In global markets, despite better-than-expected growth data from the U.S., investors continue to take cautious steps due to the Christmas holiday. Next week, the data flow is expected to be quite weak due to the New Year holiday.

U.S. President Donald Trump’s tariff policies have raised concerns as the year 2025 closes with dovish expectations regarding the U.S. Federal Reserve (Fed). In the third quarter of this year, the country’s economy managed to grow by 4.3% according to preliminary data, surpassing forecasts.

Fed Meeting Minutes to be Monitored

Next week, the minutes from the Fed’s latest meeting will attract investors’ attention. Analysts indicate that by observing the Fed officials' views on combating inflation in these minutes, this information could have an impact on market expectations.

Additionally, Trump's statements regarding the new Fed chair, saying, "No one who disagrees with me can be the Fed Chair," have raised expectations for interest rate cuts and brought the issue of increasing political pressure on the Fed to the agenda.

Gold and Silver on the Rise

Last week, optimism about the Fed’s easing policies resulted in a significant rise in precious metals. The price of gold reached a record high of $4,549.9 on Friday, finishing the week with a 4.5% increase at $4,533. Silver also showed a remarkable performance, closing at $79.2 with a 17.9% rise.

New York Stock Exchange on the Rise

The New York Stock Exchange generally displayed a positive trend last week. The S&P 500 index rose by 1.40%, the Nasdaq index by 1.22%, and the Dow Jones index by 1.20%. In the week starting December 29, important data such as home sales and the Dallas Fed manufacturing index are expected to be announced.

Negative Trend in European Markets

On the European side, last week saw low trading volumes dominated by a sell-off due to the Christmas holiday. The U.K.'s GDP grew by 0.1%. The FTSE 100 index decreased by 0.27%, the CAC 40 by 0.59%, the MIB 30 by 0.33%, while the DAX index increased by 0.21%.

Asian Markets Show Positive Performance

Asian markets exhibited a positive trend as concerns about technology companies eased. In Japan, the Central Bank raised interest rates to 0.75%, making this a significant focus in the markets. The Shanghai composite index increased by 1.88%, the Hang Seng by 0.50%, the Kospi by 2.71%, and the Nikkei 225 by 2.51%.