Morning Brew January 27 2026

Good Morning, 

Global markets entered Tuesday with heightened volatility and a sense of anticipation ahead of major U.S. events.

After nearly two decades of negotiations, the European Union and India have reached a comprehensive trade agreement, covering roughly a quarter of global economic output. Indian Prime Minister Narendra Modi hailed the deal as a milestone for trade and investment between the two blocs.

In commodities, silver stole the spotlight with extraordinary price swings. The metal surged as high as 117, dropped back near 100, and rebounded to 109 overnight — marking its strongest intraday move since 2008. The Gold/Silver ratio fell to 46, its lowest in 14 years, signaling renewed investor enthusiasm for silver. With prices trading far below the 200-day average, momentum rather than fundamentals appears to be driving the market. Traders can track the ratio under XAUXAG on SaxoTrader.

Meanwhile, political uncertainty looms large in the U.S. A government shutdown is once again on the horizon, centered on a $64 billion dispute over funding for the Department of Homeland Security (DHS). The debate is also affecting sectors linked to immigration enforcement, as shares of U.S. prison operators contracted with ICE fell sharply Monday.

Adding to trade tensions, Donald Trump announced plans to raise tariffs on South Korean goods from 15% to 25%, targeting cars and pharmaceuticals. The timeline remains unclear, and this comes despite a prior deal in July that was meant to prevent such increases. Traders are also watching for potential tariff actions on Canadian imports, though Ottawa has downplayed the risk.

Equity markets reacted cautiously but closed higher on Monday: the S&P 500 rose 0.6%, the Dow added 0.7%, and the Nasdaq gained 0.5%. Technology and communication services led the advance, with Apple up 3%, Meta 2.1%, and Microsoft 0.9%, while Tesla slid 3.1% and Intel extended losses with another 5.7% decline.

In precious metals, gold hit new record highs above $5,100, supported by renewed safe‑haven demand amid fiscal and geopolitical concerns.

On the currency front, the U.S. dollar weakened for a third consecutive day, touching its lowest level since 2022, as political and trade risks weighed on sentiment. The Dollar Index slipped to 97, with USDJPY at 154.50, EURUSD at 1.1875, GBPUSD at 1.3685, and the Swiss franc strengthening to 0.7770.

Market participants are now turning their focus to two key catalysts: today’s U.S. Consumer Confidence data and tomorrow’s Fed rate decision. Traders widely expect no policy change, with roughly two 25‑basis point cuts priced in for later this year. Politics, tariffs, and budget negotiations, alongside a wave of major earnings reports, are set to dominate sentiment in coming days.

Tuesday January 27

Data  Japan PPI,Hungary Rate Decision, US Consumer Confidence

Earnings UnitedHealth, Boeing, UPS, GM, RTX, American Airlines, Northorp Grumman, Texas Inastruments,

Speakers: 

Wednesday January 28

Data Australia CPI, Bank Of Canada, US Rate Decision

Earnings ASML, AT&T Starbucks, Microsoft, Meta, Tesla, IBM,

Speakers:  Jerome Powell

Thursday January 29

Data EU Consumer Confidence, US initial Jobless Claims, Factory Orders

Earnings :  Mastercard, Visa, Apple, SAP, SANDISK

Friday January 30

Data Tokyo CPI, Swiss KoF

Earnings SoFi, American Express Verizon,  Chevron, ExxonMobile,