Global markets were mixed during the week as elevated long-end bond yields and diverging central bank trajectories weighed on risk appetite. US equities were broadly flat with relative resilience in technology, while Indian equities corrected on valuation pressures, foreign outflows, and higher crude prices; European and Chinese equities remained subdued amid weak economic data and structural headwinds. The US dollar softened as interest-rate differentials narrowed, supporting the euro and yen, while commodities outperformed led by gold and silver on safe-haven demand and oil on supply risk premia. Geopolitical risks remained elevated, driven by renewed US–Europe trade tensions, tighter Chinese listing regulations, and increased volatility in Japan’s bond market.
Weekly Market Wrap
23rd January 2025
