Market Summary - January 6, 2026

Asian Markets Reach New Heights

Asian stock markets achieved record highs on January 6, 2026, buoyed by a strong performance in the United States, where the Dow Jones index also reached an all-time peak. The MSCI index of emerging Asia equities rose by 1.1%, with Japanese stocks leading the charge, increasing by 1.6%. Taiwan and South Korea also set new records, while Chinese markets performed well, with Hong Kong stocks rising by 1.8% and mainland stocks reaching their highest levels since 2015.

French Inflation Rate Declines

France's annual inflation rate fell to 0.8% in December 2025, the lowest in seven months and below expert predictions. This decline was primarily due to a significant drop in energy prices, particularly fuel. However, rising food costs, especially for fresh produce, partially offset this decrease. Overall prices saw a slight increase of 0.1% compared to the previous month, attributed to higher holiday transport costs, but this was still lower than expected. The broader European inflation rate was even lower at 0.7%.

European Markets Maintain Stability

European stock markets remained stable, holding near record highs achieved the previous day. Despite rising political tensions between the US and Venezuela, investor confidence in the economy persisted, particularly in mining companies benefiting from higher precious metal prices. The main European index saw a slight increase, with Germany and Spain hitting all-time highs, supported by expectations of increased government spending in Germany. Notably, shares of delivery company InPost surged nearly 15% following news of a potential buyout.

Currency and Commodity Movements

The US dollar experienced a slight decline for the second consecutive day as concerns over US military actions in Venezuela eased. Global stock markets rallied, aided by Federal Reserve officials signaling more supportive interest rate policies, which reduced demand for the dollar. The dollar index fell by 0.1%, allowing other currencies like the British Pound and Euro to rise slightly, with the Australian dollar achieving its highest level in over a year.

In the commodities market, oil prices dropped as investors anticipated that global supply would exceed demand, especially following the US's capture of Venezuelan President Nicolas Maduro, which could lead to increased Venezuelan oil exports. Brent crude fell to approximately $61.48 per barrel, while US crude dipped to $58.00. Conversely, precious metals saw gains, with gold rising 0.4% to a one-week high, driven by expectations of lower interest rates and a flight to safety amid political unrest. Silver surged 2.8%, while platinum and palladium each gained around 2%.

Looking Ahead

The European session is expected to be quiet, with most data already released. The US session will feature the final S&P PMIs for December, which are not expected to be market-moving. Attention will be on Federal Reserve speakers, including Barkin and Miran, who could introduce volatility. Historically, January tends to be a positive month for the US dollar, which traders should consider when planning potential trades.