16 January 2026
US stocks advanced on Thursday. A positive result from a major Asian chipmaker boosted market sentiment towards tech shares, while some bank shares surged after their earnings releases. The S&P 500 closed up 0.3%.
US Treasuries fell (yields rose) amid better-than-expected macro data and a busy corporate issuance slate. Investors also assessed Fed officials’ remarks. 10-year yields ended up 4bp at 4.17%.
European stocks mostly rose on Thursday. The Euro Stoxx 50 closed 0.6% higher. The German DAX advanced 0.3% while the French CAC dipped 0.2%. In the UK FTSE 100 gained 0.5%.
European government bonds were largely steady. German 10-year bund yields edged up 1bp to 2.82%, while 10-year French bond yields ended flat at 3.49%. In the UK, 10-year gilt yields rose 5bp to 4.39% following upbeat macro prints.
Asian stock markets were mixed on Thursday. Japan’s Nikkei 225 fell 0.4% as tech shares retreated, while Korea’s Kospi extended gains, closing 1.6% higher after the BoK left interest rates unchanged. Both Hong Kong’s Hang Seng and China’s Shanghai Composite edged 0.3% lower. Elsewhere, India’s financial markets were closed for a holiday.
Crude oil prices retreated markedly on Thursday following recent rallies. WTI for February delivery settled 4.6% lower at USD59.2 a barrel.
The Bank of Korea kept its policy rate unchanged at 2.50%, removing the reference to further rate cuts. It will continue to monitor macro conditions, financial stability risks, and FX market moves.
In the US, industrial production is likely to slow to 0.1% mom in December, from a 0.2% mom increase in November.
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