Global markets experienced mixed yet generally positive momentum on January 21, 2026. U.S. futures and major Asian benchmarks climbed, reflecting cautious optimism after policy-related volatility eased, while European markets traded mostly sideways. Meanwhile, the Tel Aviv Stock Exchange registered declines, highlighting domestic market sensitivities amid a backdrop of global gains.

Americas: U.S. Indices Advance, Volatility Retreats

In the Americas, equity markets saw solid gains as Dow 30 futures rose 1.21% to 49,077.23, Nasdaq futures increased 1.18% to 23,224.82, and the S&P 500 added 1.16% to 6,875.62. Small-cap Russell 2000 futures surged 2% to 2,698.17, reflecting increased investor appetite for riskier assets. Brazil’s IBOVESPA outperformed with a 3.33% gain to 171,816.67, supported by positive commodity and emerging market sentiment. Canada’s S&P/TSX Composite index advanced moderately by 0.31% to 32,851.53.

The U.S. Dollar Index held steady at 98.78 (+0.02%), while market volatility dropped sharply as the VIX declined 15.88% to 16.90, reflecting easing investor concerns. The broad rebound in equities indicates that investors were willing to re-enter risk markets following recent policy-driven uncertainty.

Europe: Mixed Session as Major Indices Hover

European equities were largely range-bound on January 21. Euronext 100 gained 0.17% to 1,748.74, FTSE 100 inched up 0.11% to 10,138.09, and CAC 40 was nearly flat at 8,069.17 (+0.08%). Conversely, the EURO STOXX 50 fell 0.16% to 5,882.88, MSCI Europe dipped 0.27% to 2,678.67, and Germany’s DAX P declined 0.58% to 24,560.98. Currency trends were modest, with the British Pound Index down 0.11% to 134.27 and the Euro Index losing 0.33% to 116.86.

The muted European performance reflected mixed economic signals and investor caution ahead of potential monetary and fiscal updates. Investors appear to be weighing global risk sentiment against domestic economic indicators, resulting in limited directional momentum.

Asia: Risk Appetite Drives Early Gains Despite Oman Holiday

Asian markets ended the day on a positive note. Japan’s Nikkei 225 surged 1.76% to 53,705.03, and South Korea’s KOSPI Composite Index rose 1.66% to 4,991.68. India’s S&P BSE SENSEX advanced 0.67% to 82,459.66, while Australia’s S&P/ASX 200 increased 0.64% to 8,839.40. Currency moves were moderate, with the Australian Dollar Index up 0.44% to 67.62 and the Japanese Yen Index slightly weaker at 63.16 (-0.11%). Mainland China’s SSE Composite edged down 0.15% to 4,110.86, and Hong Kong’s Hang Seng fell 0.18% to 26,536.18.

Liquidity was somewhat affected as the Oman Stock Exchange remained closed for Al Isra’ wal-Mi’raj, leading to selective trading in regional markets. Overall, Asia reflected a constructive risk environment, with investors eyeing earnings updates and macro data for guidance.

Tel Aviv Market Overview: Local Indices Decline Amid Global Strength

The Tel Aviv Stock Exchange saw a broad retreat on January 21. TA-35 fell 0.41% to 3,932.19, TA-90 declined 0.78% to 4,002.79, and TA-90 Banks decreased 0.70% to 4,140.20. TA-125 dropped 0.48% to 3,941.30, while the TA-125 Value index slid 1.14% to 4,082.87. Total equity turnover reached 4.49 billion NIS, with declining stocks significantly outnumbering advancing ones across major indices.

Bond markets were mixed. The All-Bond General index slipped 0.02% to 422.07, while short-term bond indices showed minor gains, reflecting cautious fixed-income sentiment amid ongoing equity volatility. Market participants remained attentive to global cues and domestic liquidity, balancing optimism for growth against inflation and interest rate considerations.

Outlook for January 22, 2026

Looking ahead, markets on January 22 are likely to react to earnings releases, macroeconomic data, and currency developments. U.S. investors will monitor corporate earnings and interest rate signals, while European markets may remain range-bound until clearer monetary guidance emerges. In Asia, the reopening of Oman’s market could provide additional liquidity, influencing local risk positioning. Tel Aviv’s performance will likely continue to reflect global trends tempered by domestic developments, including sector-specific movements and bond market dynamics. Traders and investors should remain vigilant for any geopolitical or economic surprises that could alter the current risk-on sentiment.