The week that was

Global equity markets enjoyed a strong start to 2026, with the S&P 500 now within touching distance of the 7,000 mark. Materials were the stand-out performer, driven by rising copper prices amid tightening supply and strong demand. European equities also delivered solid returns, buoyed by technology and defence companies. Defence stocks moved higher on the back of rising geopolitical tensions, while gold and oil also advanced. Global bonds were largely unchanged over the week.

Summary economic releases

The week ahead

Asian markets moved higher overnight, with equities in Hong Kong climbing on the back of a strong rally in technology names. While Japan is closed for a public holiday, speculation over the weekend suggested further political uncertainty could be on the way, with new Prime Minister Takaichi reportedly considering calling a snap general election to capitalise on her popularity.

The dollar has given up much of last week’s strength and safe-haven assets such as gold are trending higher after US Fed Chair Powell indicated that a criminal probe launched into the institution’s renovation works was a pretext to undermine the central bank’s independence. Following a strong rally last week, oil prices are little changed this morning despite protests in Iran escalating to levels last seen during the Islamic Revolution of 1979.

Corporate releases will be the dominant driver of market sentiment this week with the commencement of the Q4 earnings season. The bulge-bracket banks JP Morgan, Goldman Sachs and Morgan Stanley will be in sharp focus, with investors particularly keen for insight into the outlook for loan growth, trading activity and investment banking volumes. Attention will also centre on President Trump’s proposal to cap credit card fees at 10% for one year. Overall, US earnings are expected to have climbed by 8.3% in Q4, marking the tenth consecutive quarter of year-on-year growth. Recent upward revisions have primarily been driven by the Information Technology sector, leaving expectations elevated going into the quarter. Looking ahead to 2026, US earnings are forecast to grow by a healthy 15% year on year.

Closer to home, attention will be on releases from Grafton Group, where the focus will be on the strength of UK sales following the November Budget, and Glenveagh Homes, where partnership activity and new supply will be closely monitored, alongside commentary around first-time buyer activity.

Macro releases will also attract significant attention, in particular Tuesday’s US inflation print, which is expected to come in at 2.7% for December. With tariff pass-through peaking and retailers cutting prices, there is scope for inflation to trend lower in the months ahead, which would improve the prospects for further Fed cuts this year. Thursday is likely to bring confirmation that the German economy expanded by 0.3% in 2025 following two years of contraction. Expectations are that this improving trend continues, with growth of around 1% forecast for 2026. Following last week’s miss on monthly non-farm payrolls, Thursday’s US initial jobless claims data will receive additional attention. Thursday will also see the release of Irish inflation data for December. While there are hopes it will moderate slightly from November’s 3.2% reading, it continues to underscore the need for Irish savers to seek financial market-based alternatives if they are to preserve and grow the real value of their capital over time.

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