Global markets reacted to a mix of economic signals on January 12, 2026, as investors digested recent Federal Reserve guidance and awaited upcoming macroeconomic data. Equity indices showed modest gains in the Americas and Europe, while Asia led a regional rally, particularly in Japan and Hong Kong. In Israel, the Tel Aviv Stock Exchange saw mixed performances across key indices, reflecting selective sector momentum and bond market pressure.

Americas: Steady Gains Amid Fed Signals

U.S. markets traded with limited movement on Monday, with the Dow Jones Industrial Average up 0.17 % to 49,590.20, S&P 500 up 0.16 % to 6,977.27, and Nasdaq gaining 0.26 % to 23,733.90. The S&P/TSX Composite index in Canada advanced 0.80 % to 32,874.70, while the Russell 2000 added 0.44 % to 2,635.69. Market volatility, measured by the VIX, rose 4.35 % to 15.12, signaling investor caution despite broadly positive equity performance.

Investors weighed recent Fed communications suggesting a potential pause in rate hikes, balancing short-term risks against expectations for inflation data. The US Dollar Index increased 0.12 % to 98.98, reflecting a mildly firmer greenback amid stable risk sentiment. Overall, the market remained cautious, with participants focused on CPI releases that could influence monetary policy direction.

Europe: Broad-Based Gains Across Major Indices

European stocks advanced on January 12, with the MSCI Europe up 0.59 % to 2,712.04 and Germany’s DAX increasing 0.57 % to 25,405.34. The Euro Stoxx 50 gained 0.31 % to 6,016.30, while the FTSE 100 in London edged 0.16 % higher to 10,140.70. The British Pound Index rose 0.46 % and the Euro Index gained 0.26 %, supporting equity momentum.

Markets were buoyed by optimism around corporate earnings and ongoing economic resilience, particularly in industrial and financial sectors. Investors remained attentive to potential ECB policy guidance and European inflation trends, which could affect both currency positioning and equity sector performance in the coming sessions.

Asia: Japan and Hong Kong Drive Regional Rally

Asian equities rallied sharply, led by Japan’s Nikkei 225, which jumped 3.10 % to 53,550.19, while Hong Kong’s Hang Seng advanced 1.01 % to 26,876.27. South Korea’s KOSPI Composite added 0.75 % to 4,659.64, and Australia’s S&P/ASX 200 rose 0.84 % to 8,833.10. In India, the S&P BSE Sensex increased 0.24 % to 84,079.32.

Mainland China showed mixed performance, with the SSE Composite declining marginally by 0.03 % to 4,163.84. The Japanese Yen Index fell 0.10 %, supporting exporters and technology-linked names. Investor sentiment was driven by improving regional risk appetite, stronger corporate outlooks, and selective currency movements, highlighting Asia’s continuing role as a global growth engine.

Tel Aviv: Mixed Session Across Equities and Bonds

The Tel Aviv Stock Exchange saw moderate trading volumes on January 12, 2026, with the TASE-35 index rising 0.68 % to 3,884.13 and the TASE-125 up 0.49 % to 3,926.38. Mid-cap and sector-specific indices showed mixed results, with TASE-90 and bank indices slightly lower by 0.08–0.28 %. The All-Bond General index declined 0.11 %, while short-term and inflation-linked bond indices saw marginal losses. Equity trading volume totaled approximately 4.87 billion NIS, with bonds reaching 6.39 billion NIS.

Market participants focused on selective sector rotations and ongoing sensitivity to global market cues. Defensive sectors showed relative stability, while higher-beta equities responded to regional and international investor flows.

Forward-Looking Outlook: January 13, 2026

Looking ahead, global markets on January 13 are likely to remain influenced by upcoming U.S. CPI data, ongoing Fed communications, and regional macroeconomic updates. Investors will monitor equity performance for signs of sustained momentum in Asia and Europe, while currency fluctuations and bond yields may continue to influence risk-adjusted positioning. In Tel Aviv, selective sector leadership and external market sentiment will likely shape intraday trends, with investors balancing growth opportunities against macroeconomic uncertainty.