26 January 2026Fed Rate Decision: Investors expect the Federal Reserve to hold rates steady despite political pressure, signaling confidence in economic resilience. However, this high certainty creates a risk if economic data suddenly weakens.
Bank of Japan Intervention: Suspected central bank intervention caused a sharp drop in the USD/JPY exchange rate. This threatens the "yen carry trade," potentially triggering a sell-off in US markets. US Tariff Reversals: The White House suspended tariff threats against Europe but targeted Canada, causing the US dollar to fall. This erratic policy increases geopolitical risk and forces investors to adjust currency hedges. Gold Price Surge: Gold is nearing $5,000 an ounce as institutional investors seek safety. This safe-haven buying reflects deep concerns over inflation, fiscal stability, and geopolitical tensions. IMF 2026 Growth Forecast: The IMF upgraded its global growth projection to 3.3%, citing strong tech investments. This provides a psychological boost to equity markets amid high interest rates. Adani Group Plunge: Shares of Adani Group plummeted after US regulators bypassed India to serve Gautam Adani with fraud summons. This legal escalation poses significant risks for emerging market lenders. Amazon Layoffs: Amazon is reportedly preparing to cut thousands of corporate jobs in early 2026. This reflects a cooling in corporate spending and an ongoing efficiency drive in Big Tech. Defense Sector Boom: European defense stocks surged, highlighted by the massive Amsterdam IPO of CSG. Investors are betting on increased European military spending despite broader economic uncertainties.
