January Market Review 2026
Global equity markets began the year with cautious optimism, rebounding from negative returns in November and December. Investor sentiment remained measured, as elevated technology valuations and ongoing geopolitical tensions continued to weigh on equities. Fixed income markets faced pressure amid shifting expectations for monetary policy and economic growth. Japanese government bond yields rose to multi-year highs ahead of a stimulus package from the newly elected Prime Minister, pressuring bond prices. In the US, the Federal Reserve held interest rates at 3.50-3.75% in January, signalling a pause in tightening while monitoring economic conditions.
