Global markets closed broadly positive on Tuesday, January 6, 2026, amid selective risk-taking and cautious investor optimism. While U.S. and European indices advanced on stable liquidity and sector rotation, Asian markets showed divergent performances as holiday-thinned trading reduced regional participation. Tel Aviv equities demonstrated early-year strength, signaling renewed investor interest in domestic equities after the holiday season.

Americas: Broad-Based Gains Amid Optimism

U.S. markets saw a strong session, led by small-cap equities. The Russell 2000 surged 1.37 percent to 2,582.90, reflecting investor confidence in domestic growth and cyclical sectors. Major benchmarks also advanced, with the Dow Jones Industrial Average rising 0.99 percent to 49,462.08, the S&P 500 up 0.62 percent to 6,944.82, and the Nasdaq climbing 0.65 percent to 23,547.17. Volatility remained low, with the VIX falling 1.01 percent to 14.75, indicating measured risk appetite.

In Canada, the S&P/TSX Composite Index added 0.58 percent to 32,407.02, supported by gains in energy and materials sectors. In Brazil, the IBOVESPA rose 1.11 percent to 163,663.88, reflecting investor interest in export-oriented and commodity-linked equities. Currency movements were modest, with the US Dollar Index essentially flat at 98.54, suggesting relative stability in cross-border flows.

Europe: Steady Advances Despite Selective Weakness

European equities climbed moderately on January 6. The FTSE 100 led gains, rising 1.18 percent to 10,122.73, buoyed by financial and energy sectors. The MSCI Europe Index added 0.52 percent to 2,690.95, while the CAC 40 and Euronext 100 rose 0.32 percent and 0.39 percent, respectively. Germany’s DAX inched up 0.09 percent to 24,892.20, reflecting cautious buying ahead of corporate earnings releases.

European currency indices declined modestly, with the Euro Index down 0.32 percent and the British Pound Index falling 0.30 percent, suggesting selective hedging by institutional investors. Markets in Bosnia-Herzegovina, Montenegro, Kazakhstan, and Russia were closed for Christmas, reducing cross-border trading volumes and limiting regional liquidity.

Asia: Mixed Performance and Holiday-Reduced Participation

Asian markets were mixed on January 6, reflecting sector-specific and regional divergences. Mainland China’s SSE Composite Index rose 0.29 percent to 4,095.54, supported by domestic consumer and infrastructure sectors. In contrast, Hong Kong’s Hang Seng fell 1.02 percent to 26,438.01, highlighting continued caution in tech-heavy equities. Japan’s Nikkei 225 declined 0.91 percent to 52,042.59, while South Korea’s KOSPI lost 0.57 percent to 4,499.53, pressured by weak electronics exports and profit-taking. India’s S&P BSE Sensex was down 0.27 percent to 84,835.88. Australia posted modest gains, with the S&P/ASX 200 up 0.26 percent to 8,705.50, supported by resources and financials. Holiday closures in Kazakhstan and Russia further reduced trading liquidity across Asia.

Tel Aviv: Strong Early-Year Momentum

Tel Aviv equities led regional performance on January 6. The TA-35 index surged 2.86 percent to 3,845.39, with 24 advancing stocks versus 9 decliners. The broader TA-90 and TA-125 indices rose 1.72 percent and 2.55 percent, respectively, reflecting broad participation and selective rotation across sectors. Trading volumes were robust, with equities totaling NIS 5.44 billion and bond markets posting measured gains. The All-Bond General Index increased 0.12 percent, while short-term bonds were nearly unchanged. Balanced-sector indices and value-focused measures recorded moderate gains, signaling a constructive start to 2026 for domestic investors.

Outlook for January 7, 2026

As markets reopen on January 7, investors will monitor cross-border liquidity, currency movements, and regional participation, particularly in Asia and Europe where holiday-thinned volumes have limited trading. Tel Aviv equities may continue to benefit from early-year momentum, while global investors will be watching sector rotation in U.S. and European indices. Key factors include macroeconomic developments, policy signals from central banks, and geopolitical events. Maintaining a cautious stance in light of mixed Asian performance and regional market holidays will likely guide institutional decision-making in the midweek session.