Global Stocks Slip as Investors Reassess Risk at Start of 2026 – Europe Market Wrap
Global equities are on course for their first decline of 2026, as investors pause to reassess risk while positioning portfolios for the year ahead. Bond markets rallied worldwide, pushing yields lower.
S&P 500 futures slipped 0.1% after the index set a new record on Tuesday. Nasdaq 100 contracts fell 0.3%. European equities were little changed, while Asian shares headed for their first daily drop of the year.
The early-January rally has been powered by confidence in resilient earnings and cooling inflation, reinforcing expectations that the Federal Reserve can continue easing policy. That optimism has so far withstood a more unsettled geopolitical backdrop, including US actions tied to Venezuela, renewed intervention threats, and rising friction between China and Japan.
Government bonds gained, led by Europe, after soft German data and slower euro-area inflation strengthened the case for interest-rate cuts later this year. US Treasuries followed suit, with the 10-year yield falling three basis points to 4.14%.
Commodities retreated alongside equities. Silver dropped below $80 an ounce, gold snapped a three-day advance, and copper pulled back from a record high. Mining shares were among the weakest performers in premarket trading.
