Financial Markets Daily Report14 January 2026
Markets showed limited reaction to the release of US December inflation data, which confirmed headline and core inflation unchanged at 2.7% and 2.6% yoy, respectively. US Treasury yields ended the session broadly flat, equities edged lower, and the US dollar was little changed against most major peers. Futures markets continue to price in the first Fed rate cut in June.
In the euro area, sovereign yields were broadly stable and major equity indices posted modest gains, amid a lack of significant macro developments. In contrast, Japanese equities rallied sharply, with the Nikkei rising around 3%, while the yen weakened, following reports that Prime Minister Takaichi may call early elections to secure a parliamentary majority.
In commodity markets, oil prices continued to climb, with Brent crude rising above $65.5/ barrel as tensions in Iran escalated and concerns over potential supply disruptions intensified. President Trump announced a 25% tariff on any country engaging in business with Iran, with China, India, Turkey, and Brazil among Iran’s key trading partners.