Global equities experienced a cautious session on January 28, 2026, with investor sentiment balancing between corporate earnings momentum, macroeconomic signals, and seasonal liquidity factors. While the U.S. market showed limited directional movement, Europe was under pressure from broad risk-off sentiment, and Asia saw mixed outcomes amid the Lunar New Year holidays. Tel Aviv’s local markets reflected broader regional uncertainty, with declines in equity indices offset slightly by bond market stability.

Americas: U.S. Equities Flat as Tech and Small-Cap Struggle

In the United States, major indices traded in a narrow range, with the Dow 30 edging up 0.02% to 49,015.60 and the S&P 500 marginally down 0.01% at 6,978.03. Nasdaq futures increased 0.17% to 23,857.45, reflecting selective strength in large-cap technology. Meanwhile, the Russell 2000 fell 0.49% to 2,653.55, showing continued pressure on small-cap stocks sensitive to global growth expectations. The VIX remained stable at 16.35, indicating moderate market calm despite uncertainty in tech earnings and macro data. The US Dollar Index declined 0.31% to 96.15, providing some relief for multinational exporters. In Canada and Brazil, the S&P/TSX Composite rose 0.24% to 33,176.07, while the IBOVESPA jumped 1.52% to 184,691.05, supported by commodity price resilience and emerging market flows.

Europe: Broad Risk-Off Sentiment Pressures Equity Markets

European equities faced notable declines on January 28, with the EURO STOXX 50 dropping 1.02% to 5,933.20 and the CAC 40 down 1.06% to 8,066.68. The DAX lost 0.29% to 24,822.79, while the FTSE 100 fell 0.52% to 10,154.43. Regional indices were weighed down by investor caution over ongoing monetary policy uncertainty and persistent inflation concerns. Currency movements reflected similar caution, with the Euro Index down 0.68% to 119.55 and the British Pound Index declining 0.29% to 137.98. Overall, capital flows remained defensive, favoring high-quality assets and low-volatility sectors ahead of anticipated economic data releases.

Asia: Selective Gains Amid Lunar New Year Liquidity Constraints

Asian markets were mixed, reflecting both risk appetite in growth-focused economies and seasonal liquidity constraints. South Korea’s KOSPI Composite climbed 0.86% to 5,215.35, while India’s S&P BSE Sensex advanced 0.60% to 82,344.68. The Hang Seng Index rose 0.26% to 27,899.92, and Australia’s S&P/ASX 200 declined 0.51% to 8,888.10. China’s SSE Composite edged lower by 0.10% to 4,147.15, while Japan’s Nikkei 225 was virtually flat at 53,380.24. The Japanese Yen Index weakened 0.75% to 65.19, adding volatility for exporters. Reduced trading activity in Malaysia, where the Kuala Lumpur Stock Exchange was closed for Chinese New Year, contributed to thinner liquidity and amplified price movements in regional equity and currency markets.

Tel Aviv: Equity Correction Continues While Bond Markets Hold

Tel Aviv stocks retreated on January 28, with the TA-35 falling 0.72% to 3,980.54 and the TA-90 losing 1.43% to 4,054.24. Broader sector indices mirrored this trend, including the TA-90 Banks and TA-125, which declined 1.59% and 0.87% respectively. Trading volumes were moderate, totaling approximately 5.29 billion NIS in equities, with bond markets showing stability: the All-Bond General Index edged up 0.03% to 423.14, reflecting investor preference for fixed income amid equity weakness. Short-term bonds gained modestly, highlighting continued focus on capital preservation during periods of market correction.

Looking Ahead: January 29 Market Outlook

For January 29, 2026, investors should monitor several key factors. U.S. and European equities may remain range-bound as markets digest earnings and macro updates, while currency movements will continue to influence export-oriented sectors. In Asia, liquidity constraints from Lunar New Year celebrations could exacerbate volatility, especially in smaller markets. Tel Aviv investors are likely to track domestic banking and technology sectors closely, with bond market stability offering a buffer. Across regions, the interplay between inflation data, central bank signals, and geopolitical developments will be critical for guiding cross-border investment strategies and positioning portfolios for resilience.