The week that was

Global equity markets edged modestly lower last week despite geopolitical tensions over the future of Greenland, which caused significant volatility. The S&P 500 posted its first week of back-to-back losses since June as fresh tariff threats roiled US equities, particularly across the Utilities, Financials and Tech sectors.

Chipmaker Intel was among the most volatile names, declining 17% on Friday following disappointing guidance, however the share price has still climbed by over 130% since last July. European equities also moved modestly lower on the tariff tantrum whilst the Euro strengthened to its highest level vs versus the Dollar since last September as investors sought to diversify away from the Greenback on policy uncertainty.

Global commodities continued their move higher with Gold hitting fresh highs on geopolitical tension and Copper also moving higher on strong industrial demand. Global bonds were largely unchanged on the week, however, fiscal concerns saw the Japanese 40-year bond yield cross the 4.0% mark for the first time.

Summary economic releases

The week ahead

Asian markets moved lower this morning, reflecting volatility in currency markets and rising geopolitical tensions. Markets reacted negatively to reports that the US would apply fresh tariffs on Canada if it were to significantly ease trading restrictions with China. The Yen rose over 1.0% relative to the Dollar on growing speculation that the Bank of Japan will intervene in currency markets potentially in a coordinated move with the US. This also resulted in safe havens such as Gold passing through $5,000 an ounce and Silver hitting a fresh record overnight.

Corporate releases should be the dominant driver of market sentiment as Big Tech quarterly earnings roll in. Key names in focus will include Apple, Meta and Microsoft. For the latter, markets will be particularly focused on the potential for any upside to the 37% revenue growth guide for its Azure Cloud division, alongside the strength of demand for Copilot. In Europe, attention will centre on market bellwethers like ASML and LVMH, with investors looking for evidence of margin recovery in Fashion & Leather Goods particularly in China along with any commentary on pricing dynamics.

For ASML, order intake and shipment timing will be critical in determining Q4 performance, whilst investors will be particularly focused on order intake trends, particularly given the recent run-up in the share price. Closer to home, Greencoat and Uniphar will have updates. The latter is expected to continue its strong momentum noted in H1, with the Pharma division expected to deliver double-digit growth, Medtech targeting high single-digit growth whilst Supply Chain and Retail will be looking to achieve low single-digit growth. Greencoat’s NAV may be impacted by mixed energy pricing in Ireland, France and Spain, offset by better German energy pricing.

Economic releases will also garner significant attention this week, particularly the US Federal Reserve meeting on Wednesday. The FOMC is expected to keep rates unchanged; however, the market will be looking for clues on how long board members expect the pause to last given the stabilisation in the labour market and improvement in the macro backdrop.

Just under two rate cuts are currently priced for the remainder of the year, though uncertainty remains following indications that the announcement of a new Fed Chair may be imminent. Elsewhere, Eurozone GDP data on Friday is likely to indicate the bloc lost momentum in Q4 2025. Growth in the Eurozone’s largest economy, Germany, has been improving; however, today’s IFO reading indicated that the business outlook has slipped modestly at the start of 2026.

This is an extract from the Weekly Markets Report by Cantor Fitzgerald Ireland. For more details 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