On Wednesday, the US stock indices traded mixed. By the end of the day, the Dow Jones (US30) rose by 0.03%, while the S&P 500 (US500) edged down by 0.01%. The tech-heavy Nasdaq (US100) closed higher by 0.32%. Investors adopted a wait-and-see approach ahead of major tech earnings and the anticipated Fed decision to maintain interest rates. At its January 2026 meeting, the US Federal Reserve left the federal funds rate unchanged in the 3.50-3.75% range, fully meeting market expectations. The decision follows three consecutive cuts last year that brought borrowing costs to their lowest level since 2022. However, a split emerged within the Committee: Governors Stephen Miran and Christopher Waller voted against the hold, advocating for an additional 25 bps cut. The regulator reaffirmed that future decisions will depend on incoming macroeconomic data, updated expectations, and the balance of risks. During the press conference, Fed Chair Jerome Powell emphasized that the US economy enters 2026 on a “solid footing,” stating that current rate levels are appropriate for making progress toward the Fed’s dual goals of price stability and maximum employment.

The Canadian dollar (CAD) strengthened to 1.35 against the US dollar, reaching a sixteen-month high as markets reacted to the Bank of Canada’s latest monetary policy decision and signals. Although US tariffs and ongoing trade uncertainty continue to pressure the Canadian economy (dampening exports, investment, and labor reallocation), the Bank of Canada maintains a relatively constructive macroeconomic outlook. The regulator expects moderate GDP growth of approximately 1.1% in 2026 and 1.5% in 2027, estimating that excess capacity will generally offset tariff-related cost increases, keeping inflation near the 2% target.

European equity markets mostly declined on Wednesday. Germany’s DAX (DE40) fell by 0.29%, France’s CAC 40 (FR40) dropped by 1.06%, Spain’s IBEX 35 (ES35) lost 1.10%, and the UK’s FTSE 100 (UK100) finished down 0.52%. The primary pressure came from the luxury goods sector. LVMH shares plummeted 7.3% following weak financial results, dragging the entire segment down. CEO Bernard Arnault pointed to a challenging market environment and warned that 2026 would likely be a difficult year for the industry. Investors also remained cautious ahead of the US Federal Reserve’s monetary policy announcement.
The Swiss franc (CHF) strengthened above 0.77 against the US dollar, reaching its highest level in ten years amid a global shift toward safe-haven assets and a simultaneous aversion to other traditional “haven” currencies. Despite the franc’s strength putting downward pressure on Switzerland’s already subdued inflation, expectations for further rate cuts from the Swiss National Bank (SNB) remain limited. The SNB’s policy rate has been held at 0% for six consecutive months, with central bank officials repeatedly emphasizing a cautious stance regarding a potential return to negative interest rate territory.

Platinum (XPT) prices rose toward $2,700 per ounce, returning to record levels fueled by persistent supply constraints and robust investment demand. An additional growth factor is the narrowness of the platinum market and its relatively low price compared to other precious metals, making even moderate physical purchases capable of significantly impacting price action. The structural annual supply deficit remains the key fundamental driver. Production in South Africa, which accounts for about 70% of global output, continues to face underinvestment, infrastructure disruptions, and logistical constraints. Supply risks could also intensify in Canada, another major producer, amid threats of 100% tariffs should trade agreements with China proceed.

WTI crude oil prices rose toward $64 per barrel, hitting a four-month high due to rising geopolitical risks following tough new US statements directed at Iran. President Donald Trump warned of possible further strikes while simultaneously calling for Tehran to negotiate, heightening market fears of potential disruptions to Iranian oil supplies. Fundamental data also supported the bullish move. According to the EIA report, US crude oil inventories fell by 2.3 million barrels last week, contrary to market expectations of a 1.75 million barrel increase, further strengthening the upside momentum.

Asian markets traded with mixed dynamics yesterday. Japan’s Nikkei 225 (JP225) rose by 0.05%, China’s FTSE China A50 (CHA50) edged down 0.04%, Hong Kong’s Hang Seng (HK50) surged 2.58%, and Australia’s ASX 200 (AU200) posted a negative result of 0.08%.

On Thursday, the Australian dollar (AUD) climbed above 0.70 USD, hitting a three-year high amid a gold rally and growing expectations for monetary policy tightening. All four of Australia’s major banks now consider an RBA hike likely, with market pricing reflecting a probability of over 70%. Rates are now fully priced at 3.85% by May and approximately 4.10% by September.