Financial Markets Daily Report19 January 2026
Financial markets ended Friday on a mixed note ahead of a long weekend in the US, where markets are closed today for Martin Luther King Day. US Treasury yields moved higher following mixed macro data: industrial production rose, while the NAHB Index signaled continued weakness in housing construction. European sovereign yields also edged up, with the French spread widening after PM Lecornu announced it will amend again the budget draft to secure parliamentary approval.
Equity indices were broadly lower on both sides of the Atlantic, with Iberian indices standing out as positive exceptions. US equities saw a choppy session as earnings season kicked off. In FX, the dollar strengthened against the euro after Trump indicated he would prefer to keep Hassett as a presidential advisor rather than nominate him as the next Fed Chair.
In commodities, oil prices posted modest gains amid elevated geopolitical risks. Meanwhile, the European benchmark for natural gas (TTF) rose on bouts of unusually cold weather and low storage levels, closing the week with a 30% hike.