The year 2026 opened with global markets broadly positive, albeit with higher volatility compared to the end of 2025. The overall backdrop remains constructive, with investors still oriented toward risk, but increasingly selective across sectors, regions, and asset classes, in an environment shaped by interest-rate dynamics, inflation trends, and global growth prospects.
In the United States, equity indices posted moderate gains alongside a clear sector rotation. Market leadership broadened beyond mega-cap technology stocks toward more cyclical and traditional sectors such as industrials, financials, and consumer staples. Small caps outperformed large caps, and value stocks continued to outperform growth, signaling a more balanced market structure and reduced dependence on a narrow group of names. The Federal Reserve kept policy rates unchanged, reinforcing a wait-and-see approach, as expectations for near-term rate cuts were scaled back amid gradually easing inflation and a still-resilient labor market.
Europe delivered a more favorable performance. Equity markets benefited from stable macroeconomic data, corporate earnings generally exceeding expectations, and a cautious stance from the European Central Bank. Banks, industrials, basic resources, and energy were among the strongest-performing sectors, while areas more sensitive to margin pressure and consumer demand lagged.
Asia presented a mixed picture. Japan showed relative strength, supported in part by a weaker yen, while China and Hong Kong experienced higher volatility, reflecting lingering investor caution toward domestic growth prospects. More broadly, emerging markets and Asia ex-US continued to outperform, contributing to a further broadening of global market leadership.
Commodities were the standout performers of the month. Precious and industrial metals experienced sharp price movements, with gold reaching new all-time highs before undergoing a swift correction toward month-end. This behavior reflects a combination of geopolitical tensions, technical repositioning, and structurally solid fundamentals. The energy complex also displayed pronounced volatility, underscoring the inherently unstable nature of the asset class.
On the fixed-income side, government bond yields showed differentiated trends across regions, while credit markets benefited from spread compression, supported by a still-constructive risk appetite. Currency movements played an important role in portfolio performance, with early-month dollar weakness and notable strength in currencies linked to commodity-producing economies.
Overall, January 2026 was not a month of balance, but one of selection. Markets rewarded intelligent diversification, broad geographic exposure, and strategies with clear positioning. In such a dynamic environment, active management and the ability to adapt quickly to changing conditions remain key drivers of long-term portfolio construction.