Market Summary - January 9, 2026
Asian Markets Overview
Asian stock markets experienced fluctuations as investors awaited the US jobs report and a significant Supreme Court ruling regarding President Trump's tariffs. The Nikkei index in Japan rose by 1.6%, closing at 51,939.89, marking a weekly gain of 3.2%. This increase was largely driven by Fast Retailing, the parent company of Uniqlo, which saw its shares surge nearly 11% following strong earnings. Japanese automakers also benefited from a weaker yen, which enhances the value of their overseas profits, with Mazda, Toyota, and Honda all posting solid gains. However, Aeon, a retailer, saw its shares drop nearly 8% due to disappointing earnings. Investors are now looking forward to the earnings report from Yaskawa Electric, a key indicator for the manufacturing sector.
Chinese Inflation Update
China's annual inflation rate edged up to 0.8% in December 2025, slightly above the previous month's 0.7%, but below the expected 0.9%. This marks the highest inflation rate since early 2023, driven primarily by rising food costs, particularly fresh vegetables and fruits. Core inflation remained steady at 1.2%, the highest in nearly two years, while overall inflation for the year was flat, significantly below the government's target of around 2%.
European Market Movements
European stock markets opened higher, rebounding from previous losses. The STOXX 600 index is on track for its best winning streak since May, largely due to an 8% surge in Glencore shares following news of Rio Tinto's interest in acquiring the company. While Glencore's stock hit an 18-month high, Rio Tinto's shares fell by 2.2%. The broader European market rose by 0.4%, with notable gains in energy and mining sectors. Tech stocks also performed well, with ASML and STMicroelectronics seeing increases after positive revenue reports from TSMC.
US Dollar and Currency Movements
The US dollar rose slightly, reaching its highest level in a month as investors awaited the jobs report and the Supreme Court ruling. The Euro fell to $1.1644 following unexpected declines in German exports, despite improvements in industrial production. Other currencies, including the British Pound and the Australian and New Zealand dollars, also faced declines.
Commodity Prices
Gold prices recovered some losses, trading around $4,466 per ounce, and are on track for a weekly gain of over 2%. Demand in China has increased post-holidays, while Indian buying has decreased due to high prices. Oil prices rose for the second consecutive day, driven by concerns over supply disruptions in Venezuela and unrest in Iran, with Brent crude reaching $62.82 per barrel.
Economic Outlook
As the European session progresses, attention will shift to the US jobs report, which is expected to show a slowdown in hiring. The unofficial expectation among traders is for 65,000 new jobs, while the official forecast is 70,000. The unemployment rate is anticipated to improve slightly to 4.5%. A positive jobs report could influence the Federal Reserve's interest rate decisions, particularly regarding potential cuts in January.