Global markets displayed a cautious yet constructive tone on January 26, 2026, as investors navigated a combination of macroeconomic signals, corporate news, and seasonal factors affecting liquidity. While Europe and Asia led gains, the Americas showed a more tempered performance. Tel Aviv continued its upward trajectory, reflecting resilience in local equities despite mixed global sentiment.

Americas: Mixed Trading as Investors Weigh Macro Data

U.S. equity markets closed higher on January 26, with the Dow 30 up 0.64% at 49,412.40, the S&P 500 rising 0.50% to 6,950.23, and the Nasdaq gaining 0.43% to 23,601.36. The volatility index (VIX) inched up 0.37% to 16.15, reflecting moderate risk appetite. Futures in the Americas this morning indicate a cautious start to January 27, as traders assess inflation metrics, earnings reports, and the U.S. dollar’s slight 0.02% advance to 97.06. Commodity-linked markets in Brazil (IBOVESPA -0.08%) and Canada (S&P/TSX -0.16%) showed minor declines, reflecting sensitivity to global risk sentiment and regional economic data.

Investors in the U.S. remain attentive to sector rotation, particularly technology and consumer discretionary, while smaller-cap Russell 2000 futures fell 0.36% to 2,659.67, signaling selective market participation. Overall, the Americas displayed a stabilizing effect after the first half of January, setting the stage for cautious trading on January 27.

Europe: Broad Gains Amid Positive Risk Sentiment

European equities led global gains, supported by strong investor sentiment and a weaker euro. The MSCI Europe index surged 1.38% to 2,752.76. Benchmark indices, including EURO STOXX 50 (5,957.80, +0.16%), DAX (24,933.08, +0.13%), and FTSE 100 (10,148.85, +0.05%), advanced modestly, reflecting broad-based buying in cyclical and industrial sectors. Currency movements, particularly the Euro Index (+0.46%) and British Pound Index (+0.24%), contributed to market optimism. Minor declines in the CAC 40 (-0.15%) and Euronext 100 (-0.08%) suggest selective sector rotation rather than broad weakness.

European markets benefited from early-year momentum in earnings expectations and capital inflows from risk-on sentiment, which may continue to influence trading dynamics on January 27.

Asia: Strong Performance Despite Holidays

Asian markets extended gains, though liquidity was affected by regional holidays. The KOSPI Composite Index led with a 1.90% gain to 5,043.75, supported by technology and export-oriented sectors. Hong Kong’s Hang Seng rose 1.03% to 27,041.17, while Japan’s Nikkei 225 advanced 0.42% to 53,105.03, with the Japanese Yen Index climbing 0.96%. Australia’s S&P/ASX 200 gained 0.90% to 8,939.70 despite the Sydney Stock Exchange being closed for Australia Day, highlighting offshore and futures-linked participation. India’s S&P BSE SENSEX declined 0.35% to 81,254.09 due to Republic Day trading suspension and thin volumes, amplifying short-term price movements.

The region demonstrates robust underlying momentum, with currency and macro trends supporting further gains, though holiday-induced liquidity constraints are likely to moderate market activity on January 27.

Tel Aviv: Steady Gains Across Indices

Tel Aviv equities posted broad gains on January 26. The TA-35 index rose 0.48% to 4,005.65 with a turnover of ₪1.76 billion, while the TA-90 advanced 0.57% to 4,138.82 on ₪1.01 billion in trades. TA-90 Banks (+0.96%) and sector-balanced indices (+0.59%) reflected strong investor interest. Bond markets were largely stable, with the All-Bond General index up 0.06% to 422.58 points, while short-duration and inflation-linked bonds showed minimal movement. Market breadth was positive, with advancing stocks outnumbering decliners across most segments.

Liquidity in Tel Aviv remained healthy, supporting sustained upward momentum. The combination of domestic stability and favorable global sentiment positions Israeli equities for continued measured gains on January 27.

Outlook: Key Drivers for January 27, 2026

As markets open on January 27, investors will monitor macroeconomic indicators in the U.S. and Europe, currency volatility, and corporate earnings flows. Holiday-related thin volumes in Australia and India may persist, potentially amplifying price swings in Asian equities. Tel Aviv participants will track global trends, particularly risk-on sentiment from Europe and Asia, while assessing domestic sectors for continued stability. Overall, markets are poised for a constructive start to the week, with focus on macro alignment, sector rotation, and cross-border capital flows.

Global investors and Israeli market participants alike should remain attentive to these dynamics to navigate near-term opportunities while managing volatility and liquidity considerations.