By Dow Jones Newswires Staff
Global markets were mixed as U.S. futures largely gained, with anticipation of Federal Reserve Chairman Jerome Powell's comments overshadowed by the dollar's continued selloff. The greenback sunk to a near four-year low as gold prices cantered past $5,200 a troy ounce, with haven investors continuing to look toward precious metals and the Swiss franc. President Trump appeared to encourage the dollar's weakening in comments to the press in Iowa, as the currency recorded its biggest daily fall since April.
The Fed is due to announce its latest rates decision later Wednesday. Consensus firmly expects rates to hold steady, though investors will watch closely for comments from Powell on the institution's independence, and signaling for further rate decisions.
--The dollar fell, staying near its weakest in nearly four years. The DXY dollar index declined 0.2% to 96.005, having fallen as low as 95.551 Tuesday after President Trump was asked if the dollar had fallen too much and said: "No, I think it's great." The dollar was already weak on government-shutdown fears and a weak consumer confidence survey, Deutsche Bank analysts said. All this added to existing concerns which were pushing the dollar lower, "including questions around the Federal Reserve's independence, tariff policy uncertainty and the fiscal trajectory," they said.
--U.S. Treasury yields were little changed in Asian trade, with two-year Treasury yields edging lower 0.2 basis points to 3.566%, while the 10-year Treasury yield was up 0.4 basis points at 4.226%. Japan's 40-year Japanese government bond auction was smooth amid concerns around long-dated yields in the country, analysts at First Abu Dhabi Bank said. The yield on the 40-year JGB fell 3.5 basis points to 3.906%. A strong orderbook at Germany's new 20-year Bund syndication Tuesday supported outlook for its 10-year Bund auction Wednesday, as the 10-year Bund yield fell 1.5 basis points to 2.854%. In the U.K., 10 year gilt yields were little changed at 4.517%.
--U.S. futures were largely up in early European trade. The S&P 500 rose 0.4% premarket after notching a new record close Tuesday, while U.S. tech stocks looked set to follow their Asian and European peers higher, though market mood Wednesday will be dictated by earnings for Meta, Microsoft and Tesla, among others. Futures for the tech-heavy Nasdaq climbed 0.9%. The Dow Jones Industrial Average fell 0.8% premarket, however.
--Asian markets closed largely up. The South Korean Kospi 200 index climbed 1.8% as chip maker SK Hynix--up 5.1%--notched record earnings for the final quarter. In Hong Kong, the Hang Seng index climbed 2.6%, while China's benchmark Shanghai Composite gained 0.3%. In Japan, the Nikkei was largely unchanged.
--European indexes were mixed at the open, as gains for tech stocks buoyed by record orders for ASML countered tumbling luxury stocks. French and Italian indexes fell after LVMH painted a weak demand picture in an earnings release. The CAC 40 fell 0.8% as LVMH and Kering dropped 7% and 5.2%, respectively, while the Italian FTSE MIB was largely unchanged as Moncler and Brunello Cucinelli tumbled. Both indexes were supported by dual-listed STMicroelectronics, which jumped 6.5% amid a broader tech surge. In the Netherlands, ASML shot up 7.15%, while ASM International was up 4.3%. The U.K.'s FTSE 100 nudged up 0.1% and the German DAX traded flat as miners rallied again and energy companies gained, though non-cyclical stocks slipped. In Madrid, the IBEX 35 fell 0.4% as banks hand back some of Tuesday's gains.
--Oil prices gained further in early trading after surging about 3% in the previous session as traders monitored geopolitical risks and the impact of a massive winter storm on U.S. output. Brent crude and WTI were both up 0.2% to $66.71 a barrel and $61.71 a barrel, with a falling U.S. dollar making commodities cheaper for buyers holding other currencies. "President Trump has dispatched naval assets to the Middle East. This has raised the prospect that he will follow through on his threat to attack Iran's senior leadership in response to a violent crackdown on nationwide protests," analysts at ANZ said. Meanwhile, winter storm Fern disrupted refineries on the Gulf Coast and elsewhere, further supporting prices.
--Gold prices broke through $5,200 after the U.S. dollar sank to a nearly four-year low. Futures in New York soar 4.1% to $5,291.40 a troy ounce, after hitting $5,295.20 an ounce earlier in the session. The dollar's fall makes precious metals cheaper for holders of other currencies. Gold's rally "reflects heightened geopolitical and economic risk, including shifts in U.S. policy and market stress in major bond markets, which has fuelled a debasement trade as investors seek refuge from volatile traditional assets," said Soojin Kim from MUFG.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
January 28, 2026 04:44 ET (09:44 GMT)
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