The week that was

Global equity markets ended the week modestly higher, with stocks in Europe among the standout performers from a regional perspective. The Stoxx 600 moved up 1.0%, with equities in rate-sensitive sectors such as Staples and Telecoms leading the market higher as expectations rise for a precautionary rate cut by the ECB later in the year, given the euro’s strength against the US dollar. The S&P 500 ended the week broadly flat as investor sensitivity towards high-capex guidance from Big Tech weighed on sentiment, in what was overall a good week for corporate earnings. Bonds ended the week broadly flat despite a solid level of issuance, particularly in Europe. Global commodities moved lower on the week, with oil recording its first decline in over six weeks at -2.5%.

Summary economic releases

The week ahead

Asian markets moved higher overnight on news that the Liberal Democratic Party was on track for a super majority in the Japanese general election. The result should bring greater policy stability to Japan, while measured comments from the Prime Minister with respect to fiscal policy have seen longer-dated yields trend moderately lower. Chinese equities were buoyed by a rally in technology stocks overnight, along with confirmation that the PBOC has been injecting liquidity into the market ahead of Lunar New Year celebrations.

Corporate earnings will be the primary driver of market sentiment as markets move into the latter stages of the reporting season in the week ahead. Close to 16% of the S&P 500 is due to report, including consumer bellwethers such as Coca-Cola and McDonald’s, along with Smurfit WestRock. Investors will be focused on signs of stabilisation in the corrugated markets, alongside any improvement in pricing or shipment trends. With cost discipline and network optimisation underway following last year’s pressures, updates on integration progress and the medium-term earnings outlook will be key for sentiment. Overall, close to two-thirds of S&P 500 companies have now reported, with a blended growth rate of 13%, leaving the index on track to post its fifth consecutive quarter of double-digit growth.

In Europe, it will be a busy week with oil majors Total and BP due to report, along with UK banking giant Barclays and the world’s largest beauty and cosmetics firm, L’Oréal. For the latter, markets will be looking for confirmation that growth is re-accelerating, particularly in the US and China, especially after US peer Coty failed to offer an FY26 outlook, alongside any potential M&A activity.

On the macro front, there is a raft of market-moving data points due in the week ahead. On Tuesday, US retail sales data is expected to indicate that while the US consumer softened modestly in December 2025, higher-end retail categories continued to hold up. Wednesday’s US jobs report should bring confirmation that 69k jobs were created in January, however a raft of downward revisions to prior months’ data could put pressure on the Fed to bring forward rate cuts. Data on Thursday should confirm that the UK economy effectively stagnated in Q4 and comes against the backdrop of fresh political instability. Eurozone trade data on Friday is likely to confirm that US tariffs continue to have a dampening effect on exports. US core CPI, which is at a four-year low, is expected to soften further in January. Finally, the Munich Security Conference also commences on Friday and will likely draw market attention towards Europe’s defence names.

This is an extract from the Weekly Markets Report by Cantor Fitzgerald Ireland. For more detail on individual securities, or to discuss how we can support your investment needs, please get in touch.

Written by John Mullane, CIO, Cantor Fitzgerald Ireland