Global markets are ending the week in a risk-off mood as investors reassess Fed leadership expectations, geopolitical signals and stretched positioning across assets.
Asian equities closed mostly lower 📉. Chinese indices fell between 0.85% and 1.40%, Australia’s AU200.cash dropped 1.10%, while Japan’s JP225 edged up 0.05%, supported by yen weakness despite softer inflation data.
🪙 Precious metals are undergoing a sharp correction. Gold is down nearly 4.00% to around USD 5,160 per ounce, while silver is sliding 5.70% to near USD 109, as profit-taking and a stronger dollar weigh on prices.
💱 In FX markets, the US dollar is rebounding firmly. The USD index is up 0.45%, already recovering about 1.06% from Tuesday’s low. EURUSD is down 0.34%, while USDJPY is higher by 0.55%, driven mainly by USD strength rather than Japanese data.
₿ Cryptocurrencies are also under pressure. bitcoin is down more than 3.00% near USD 81,000, while Ethereum is almost 4.00% lower at around USD 2,700. The move reflects short-term profit-taking and concerns that a potential Fed chair shift may be less supportive for crypto assets.
🏦 Attention remains on Kevin Warsh as a possible Fed chair nominee. Market pricing shows his implied probability surging above 90%, replacing Rick Rieder as the frontrunner. Warsh is seen as relatively hawkish, supporting the dollar and weighing on risk assets.
🇯🇵 In Japan, Tokyo CPI slowed to 1.5% y/y from 2.0%, while core inflation eased to 2.0% from 2.3%, reducing pressure for another Bank of Japan hike after December’s move to 0.75%.
📊 Apple shares rose 0.55% after strong earnings, with the company guiding for around 16% revenue growth in Q1, supported by an iPhone-led rebound and improved China sales.
🌐 A Panamanian court annulled port contracts linked to CK Hutchison, reviving concerns over Chinese infrastructure in strategic locations, adding to geopolitical uncertainty.
🇦🇺 In Australia, most economists now expect a 25 bp RBA rate hike to 3.85% on February 3, though it is still widely viewed as a one-off move rather than the start of a tightening cycle.
🛢️ Oil is down around 2.00%, as markets interpret US–Iran signals as deterrence with room for de-escalation, trimming risk premia.
🏆 UBS raised its gold outlook, targeting USD 6,200/oz for March, June and September 2026, with a bullish scenario of USD 7,200 and a base case of USD 5,900 by end-2026.
📌 Stay focused as markets navigate Fed expectations, month-end flows and key US data ahead.
Trade smart and stay with NordFX.
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