Risk Appetite Returns As Markets Refocus On Global Growth And Earnings

Global markets regained momentum as investors shifted focus from early-January caution toward global growth prospects and the upcoming corporate earnings season. Improved sentiment was supported by stable bond yields and signs that financial conditions remain accommodative despite lingering macro risks.

Equities advanced across major regions, led by technology and industrial stocks, as traders positioned for earnings resilience in the first quarter. U.S. indices pushed higher after several sessions of consolidation, while European and Asian markets followed suit on improved risk appetite.

Bond markets remained orderly, reinforcing confidence that central banks are unlikely to tighten policy further. Treasury yields edged slightly lower, adding support to equity valuations and high-beta assets.

In FX, the dollar softened against major peers as investors leaned back into risk-sensitive currencies. The euro and pound posted modest gains, while commodity-linked currencies benefited from firmer metals prices.

Gold edged lower as demand for defensive assets eased, though the broader trend remains constructive amid expectations of rate cuts later in the year. Oil prices stabilized after recent weakness, helped by tentative signs of improving demand expectations.

For traders, the shift highlighted a key early-2026 theme: while macro uncertainty persists, markets remain highly responsive to any signals that growth can hold up as monetary policy gradually turns more supportive.