Global News Summary 25-30 January 2026

The final week of January was shaped less by fresh economic data and more by policy credibility and the cost of capital. In the United States, markets reacted sharply after President Trump announced his nomination of Kevin Warsh as the next Federal Reserve chair, triggering a reassessment of the future policy path. Equities dipped, gold suffered a sharp reversal, and risk sentiment briefly wobbled, even as Treasury yields themselves remained relatively stable. In the UK, consumer data pointed to stabilisation rather than recovery, while the Eurozone delivered better-than-feared growth alongside inflation close to target. Across Asia, Japan’s bond market remained the key global transmission channel, with long-term yields pressing multi-decade highs and reinforcing Japan’s new role as a source of global rate volatility. Singapore stood out for its strong growth and low inflation, while Switzerland once again highlighted the tensions of a safe-haven economy operating in a near-zero inflation environment.

United States

Policy / Debt Securities
Markets were unsettled after President Trump nominated Kevin Warsh as the next Fed chair late in the week. Warsh is widely seen as a firm inflation hawk, and the announcement prompted investors to price in a potentially more restrictive future policy stance. Despite the volatility, Treasury yields were broadly steady, suggesting a repricing of expectations rather than an outright bond sell-off.

Markets / Inflation Signals
Precious metals saw a violent reversal, with gold falling sharply as real-rate expectations jumped. The move reflected a reassessment of inflation hedges rather than new inflation data. Broader risk assets weakened, particularly in rate-sensitive sectors.

United Kingdom

Economic Growth
UK retail activity showed modest improvement at the end of the year. Retail sales rose 0.4% month-on-month in December, but volumes across the entire fourth quarter still fell 0.3%, underlining that the consumer remains under pressure despite some near-term relief.

Rates / Policy
With growth fragile and inflation still elevated, the debate continued to centre on how many interest-rate cuts are realistically possible in 2026, rather than whether easing will happen at all.

Eurozone

Economic Growth
The Eurozone delivered a better-than-feared fourth-quarter GDP result, with growth around 0.3% quarter-on-quarter. This reinforced the view that the region is avoiding recession, even if momentum remains subdued.

Inflation / Debt Securities
Inflation remained close to the ECB’s 2% target, allowing policymakers to retain flexibility. Bond markets were largely driven by global factors, particularly developments in Japan and the US, rather than fresh ECB signals.

China

Macro Backdrop
No major data release during this week materially changed the outlook. The prevailing narrative remained one of stabilisation rather than reflation, with policymakers maintaining a steady, cautious stance.

Japan

Debt Securities / Global Spillover
Japan remained the most important global macro lever. Ten-year Japanese government bond yields touched around 2.26%, levels not seen in decades. The move kept investors alert to spillovers into global bond markets, foreign-exchange hedging costs, and risk assets worldwide.

Policy Context
Although policy rates were unchanged, markets remained focused on the interaction between rising yields, fiscal direction, and currency stability, rather than on any immediate central-bank action.

Australia

Inflation / Policy Expectations
Late-January attention remained on inflation dynamics. While price pressures were not accelerating sharply, they remained high enough to keep interest-rate expectations alive, particularly after earlier labour-market strength.

New Zealand

No week-defining economic release altered the near-term outlook. The narrative remained one of soft growth and cautious policy, with attention turning to upcoming inflation data.

Singapore

Economic Growth
Singapore continued to stand out as a global bright spot. Fourth-quarter GDP grew 5.7% year-on-year, bringing full-year 2025 growth to 4.8%, confirming strong momentum into year-end.

Inflation / Policy
Inflation remained benign. Core inflation held at 1.2%, allowing policymakers to maintain a steady stance while monitoring potential price pressures in 2026.

Switzerland

Inflation / Safe-Haven Dynamics
Switzerland remained locked in a very low-inflation regime, with price growth close to zero and the possibility of a brief dip into negative territory in 2026. The Swiss franc strengthened to multi-year highs, reinforcing its safe-haven status but also tightening conditions for exporters.

Policy Implications
Authorities signalled that low or even slightly negative inflation would not automatically trigger emergency policy action, keeping foreign-exchange tools firmly on the table if needed.

What This Week Meant for Investors

• US policy credibility is back in focus: leadership signals can move markets even without changes in interest rates.

• Japan is now a source of volatility, not stability: rising JGB yields matter globally.

• UK consumers are stabilising, not recovering: growth remains fragile.

• Singapore remains the “clean macro” market: strong growth with low inflation.

• Safe havens are a double-edged sword: Switzerland’s currency strength supports disinflation but risks undershooting.