DAX Holds Bullish Breakout, as AI Leaders Lift Global Equities

Global Equities

Global equities paused after a strong start to 2026. US markets were mixed, with the S&P 500 down 0.34% and the Nasdaq up 0.16%. Asian equities pulled back, led by a 1.2% drop in Japan’s Nikkei and a 0.6% decline in Asia‑Pacific ex‑Japan.

Artificial Intelligence Theme

Large‑cap technology continued to support US indices. Nvidia, Microsoft, and Alphabet advanced, while Samsung’s improved profit outlook helped sustain AI‑driven sentiment across Asian markets despite valuation concerns.

Financials and Defence

Financial stocks weakened on policy and regulatory developments. US banks and private‑equity firms saw declines, while defence companies sold off under renewed political pressure regarding production practices and capital‑return policies.

Commodities and Oil

Oil prices stabilised, with Brent rising 0.55% and WTI 0.54%. Markets reassessed US actions related to Venezuelan crude flows, keeping most of the impact concentrated within commodities rather than broader risk assets.

Digital Assets

Bitcoin reversed earlier gains, reflecting profit‑taking as risk sentiment cooled and investors awaited upcoming macroeconomic data.

US Macro Outlook

Labour‑market signals remained mixed, but expectations held for two Federal Reserve rate cuts in 2026. Markets turned attention to the upcoming nonfarm payrolls report.
• Trade Deficit (Oct): Expected at USD 58bn vs. USD 52.8bn prior.
• Initial Jobless Claims: Expected around 216k; a rise would support labour‑cooling expectations.
• Consumer Credit (Nov): Forecast +USD 12.4bn vs. +USD 9.2bn prior.

Corporate Events

Tilray Brands reports post‑market (Jan 8). Expected stock move USD 1.12, EPS –0.14, stock volume 5.83m, options volume 17,146.

Breaking News: Semiconductors

Qualcomm is in discussions with Samsung Electronics regarding contract manufacturing on the two‑nanometre process. Design work is reportedly complete for commercialisation. Samsung did not comment on customer specifics; recent supply deals have positioned its foundry arm for a “leap forward.”

Breaking News: US Banks

Major US banks are set to report significantly stronger Q4 profits, led by a rebound in investment‑banking revenues. JPMorgan reports Jan 13, followed by Citi, Bank of America, and Wells Fargo on Jan 14, with Goldman Sachs and Morgan Stanley on Jan 15. Analysts cite improved IPO activity, robust M&A, and elevated trading volumes across commodities, fixed income, and equities.

European Equities: DAX

The DAX remains firmly bullish, trading near 25,096 and holding above all major EMAs. Strong wide‑range green candles and an expanding MACD indicate trend strength rather than exhaustion.
• Support: 24,600–24,700.
• Weakness signal: Below 24,300.
• Trend‑risk zone: Below 24,000.
Higher lows dominate, with only shallow pullbacks expected as long as the structure remains intact.

-Philip Papageorgiou – Market Analyst
--X ex Twitter: PhilipForexCom