Weekly Market Update (Jan 25, 2026)

Market Hedwig
Jan 24
2 min read

HIGHLIGHTS

Trump has threatened tariffs over Greenland but has withdrawn afterwards. Markets regained confidence for now after the market sell-off before the withdrawal.

Eurozone: As Trump stepped back from the tariff threats, the immediate risk of higher trade tensions is relieved. Besides, the shift in geopolitical landscape keeps making EU policymakers reassess the bloc's role and its position in the globe.

Japan: There are various parties calling for VAT cuts. More uncertainties around the funding are pushing the yields up higher. Bank of Japan delivered a hawkish hold this week.

Gold: Gold prices remain resilient amid market shift to risk-on mode. Gold has demonstrated its utility as a hedge for portfolio, and macroeconomic conditions remain supportive. Potential geopolitical tensions are going to fuel gold prices as well.

MARKETS

Nasdaq	23,501.24	-0.06%
S&P 500	6,915.61	-0.35%
Dow	49,098.71	-0.53%
10-Year	4.24%	+1bps
Brent	65.07	+1.47%
DXY	97.46	-1.93%

*Data as of market close. 5-day change ending on Friday.

VIEW FROM THE STREET

Equity

Goldman Sachs: Equity market is broadening, and this momentum has started since late 2025. Smaller-cap and non-US equities outperform the headline US indices. Market breadth is expected to continue growing.

UBS: Robust earnings, positive growth outlook and structural trend are going to support global equities. AI, electrification and the aging population will underpin equities performance over the long term.

Fixed Income

Morgan Stanley: Amid improved financial conditions and declining inflation, 10Y treasury yields hover above 4%. Treasury volatility has continually calmed - the MOVE index is at a relatively low level. The disconnection between yield and treasury volatility is rare.

J.P. Morgan: Trump directed 2 government-sponsored enterprises to buy $200 billion of mortgage-backed securities in order to lower the mortgage rate. The announcement pushed the 30Y mortgage rate to a 3-year low.

Economy

Barclays: Incoming economic data have reiterated the resilience of consumer spending and unfavorable trajectory of household income. We believe upside risk of consumer spending remains due to measurement issues.

Morgan Stanley: The productivity boom has begun since 2020. Recently, most of the companies are holding “no hire no fire” stance, given strong nominal GDP growth.

KNOWLEDGE TRANSFER

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DISCLOSURE

This newsletter is meant for informational purposes only and is not investment advice. Always consult a licensed investment professional before making important investment decisions. Advertising and sponsorship do not influence editorial content or decisions. Market Hedwig is not responsible for the promises made or the quality or reliability of the products or services offered in any advertisement.