PhillipCapital DIFC Research Team

Weekly Global Market News – January 26

Weekly Global Market Updates – January 26 Week Ahead: Policy, politics and profits collide A busy stretch lies ahead for markets. Central banks take the stage, geopolitics nudges the investment narrative, and earnings season shifts into a higher gear with market leaders across technology, autos, banks, energy and industrials reporting. Here’s your concise playbook. Top themes to watch 1) Fed week and the policy handover narrative Rates: The Federal Reserve sets policy on Wednesday. A hold is widely anticipated, but the statement and Chair Powell’s press conference will carry more weight than the decision itself. Watch any nuance around inflation persistence, tariff pass-through, labour market cooling and the pace of balance-sheet runoff. Politics meets policy: The White House is expected to unveil a nominee for the next Fed chair in the coming days. Prediction markets have sharply repriced the odds toward a Wall Street–friendly pick, while a previously favoured candidate has been ruled out in recent press chatter. Markets will parse the choice for clues on how aggressively the next leadership might lean on growth vs inflation risks. 2) UK–China thaw on test UK Prime Minister Sir Keir Starmer heads to Beijing this week, positioning the UK for a more pragmatic stance on trade, investment and academic ties. Expect discussions to touch financial services access, investment screening, immigration controls and sector-specific cooperation. Any signs of a detente could matter for UK-listed names with China exposure (global banks, luxury, miners, education-adjacent services). 3) Big Tech earnings: AI spend vs ROI Apple (Thu): A pivotal update in a year framed by leadership succession planning and efforts to accelerate its AI roadmap, including a high-profile tie-up with Google. Investors will focus on iPhone unit trends, China demand, services growth, memory cost headwinds and any colour on generative AI integration across the ecosystem. Microsoft (Wed): Capex has surprised to the upside as cloud and AI build-outs continue. Watch Azure growth, AI workload monetisation, gross margin mix, and any commentary on diversifying dependencies on external AI partners. Guidance on FY capex (consensus pegs triple-digit billions) will be key to broader AI-infrastructure sentiment. Meta, IBM, ServiceNow, ASML, SAP, Samsung and others will help investors triangulate AI investment intensity, supply-chain bottlenecks and the timing of return on spend. 4) Autos pivot: autonomy and pricing power Tesla (Wed) faces the market after ceding the global EV volume crown to BYD. Attention will be on delivery trajectories, price discipline vs margin protection, Full Self-Driving adoption/ASP, and progress on AI and robotics initiatives. Supply chain: Any commentary on battery input costs and memory pricing will feed through to broader semiconductor and materials sentiment. 5) Banks, payments and credit quality Lloyds Banking Group (Thu) opens UK bank reporting. Net interest margin sustainability, deposit mix, capital returns and provisions tied to the UK motor finance issue will drive the narrative. Visa and Mastercard (Thu): Cross-border volumes, US consumer throughput, travel spend resilience and delinquency trends will be read across to global consumption. Deutsche Bank, ING, Nasdaq and others provide a European lens on fee income, trading, and capital deployment. 6) Industrial strength vs execution risk Aerospace/defence: Boeing (Tue), RTX (Tue), General Dynamics (Wed), Lockheed Martin (Thu), Northrop Grumman (Tue). Focus on program delivery, engine remediation, cash conversion and defence backlog durability. Cyclicals: Caterpillar (Thu) and Dow (Thu) are bellwethers for capex, construction, commodities and pricing power. 7) Energy and commodities ExxonMobil and Chevron (Fri): Capex discipline, upstream growth, buybacks and refined product margins. Commentary on LNG and Permian productivity will be closely watched. Miners: Production updates (Glencore, Antofagasta) will colour the outlook for copper, coal and trading earnings volatility. Macro calendar — the highlights Central banks Wednesday: US Federal Reserve rate decision and press conference Wednesday: Bank of Canada rate decision Inflation and growth Australia CPI (Wed) Germany: preliminary January CPI and HICP, plus labour market and first Q4 GDP read (Fri) Eurozone: flash Q4 GDP and December unemployment (Fri) France: flash Q4 GDP (Fri) US: December PPI (Fri) Other key releases Japan: December services PPI (Tue); BoJ December meeting minutes (Wed) UK: BRC Shop Price Index (Tue); BoE money and credit (Fri) US: JOLTS job openings and Conference Board consumer confidence (Tue); Q3 productivity/costs revision (Thu) Earnings — names likely to set the tone Tuesday General Motors, Boeing, UPS, Union Pacific, Texas Instruments, Kimberly-Clark, LVMH, Northrop Grumman, NextEra Energy, UnitedHealth, RTX, American Airlines, Nucor, Seagate, Logitech Wednesday Microsoft, Meta, IBM, ServiceNow, Tesla, Starbucks, ASML, General Dynamics, PPG, AT&T, KPN, Levi Strauss, Corning, Textron Thursday Apple, Samsung Electronics, SAP, Visa, Mastercard, Blackstone, Deutsche Bank, ING, Lloyds, Caterpillar, Lockheed Martin, Honeywell, Sanofi, H&M, easyJet, Royal Caribbean, Nokia, STMicroelectronics, Nasdaq, United Rentals, Glencore production, Antofagasta production Friday ExxonMobil, Chevron, American Express, Aon, Colgate-Palmolive, Verizon, Franklin Resources, Canadian National Railway, Nomura, Electrolux, Eastman Chemical What could move markets unexpectedly A hawkish rhetorical tilt from the Fed on inflation stickiness or QT, or any hint of openness to earlier cuts could swing the front end of the curve and growth vs value leadership. A Fed chair nomination perceived as markedly market-friendly (or the reverse) could reprice rate-path expectations and USD direction. Tech capex discipline: stronger-than-expected capital intensity without clear monetisation could weigh on AI beneficiaries; conversely, evidence of monetisation ramp could reignite AI equity momentum. Autos margin surprise: firmer pricing or faster autonomy monetisation could challenge prevailing EV skepticism. UK–China signals: concrete steps on financial services access or investment flows would be supportive for select UK large-caps with Asia exposure. Quick reference: Day-by-day snapshot Monday Market holidays: Australia (Australia Day observed), India (Republic Day) Select results: Ryanair, WR Berkley, Nitto Denko, Costain Tuesday Data: Japan services PPI; US JOLTS; US consumer confidence; UK BRC shop prices Earnings: Boeing, GM, UPS, RTX, Northrop, LVMH, Texas Instruments, Kimberly-Clark, Seagate, Logitech, UnitedHealth, American Airlines, Nucor, NextEra Wednesday Central banks: Fed; Bank of Canada Data: Australia CPI; Japan BoJ minutes; UK capital markets statistics Earnings: Microsoft, Meta, IBM, ServiceNow, Tesla, Starbucks, ASML, General Dynamics, PPG, AT&T, KPN, Levi Strauss, Corning, Textron Thursday Data: US productivity/costs revision Earnings: Apple, Samsung,

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January 23 – Daily Market Update

23 January 2026 – Daily Market Updates Markets Daily | Global Morning Brief As of 06:17 am ET S&P 500 futures: 6939.5 (-0.08%) Stoxx Europe 600: 607.46 (-0.23%) Nikkei 225: 53846.87 (+0.29%) Spot silver: 98.56 (+2.40%) Bitcoin: 89105.96 (-0.07%) Overnight and early-session tone Equities: US futures ease slightly, Europe is softer, and Asia finished mixed. The S&P 500 is tracking a second straight weekly pullback as investors digest earnings and shifting rate expectations. Currencies: The yen strengthened notably versus the dollar after a volatile week in Japanese assets, keeping FX volatility in focus and weighing on broader dollar sentiment. Rates: Yield curves have been steepening in several major markets as longer-dated bonds underperform. That reflects ongoing debate over fiscal paths and policy normalization timelines. Commodities: Precious metals remain firm, with silver extending gains and gold holding near recent highs as investors seek ballast amid policy and geopolitical uncertainty. Digital assets: Bitcoin is little changed, consolidating after recent swings. What’s moving the tape Rotation under the surface: Flows continue to show a bid for non-US risk, with emerging-market equities and hard assets attracting attention while some US-focused funds see outflows. Diversification away from concentrated exposures remains a recurring theme this month. Japan in focus: A rapid repricing in Japanese government bonds has challenged the long-held “low-for-long” narrative. Higher yields and currency strength are reverberating across global rate markets and equities tied to Japan’s growth and export dynamics. Curve trades reappear: With long-end yields leading, investors have revisited strategies that benefit from a steeper curve. The move underscores sensitivity to deficits, supply, and the path of policy rates across regions. Sector dispersion: Equipment and hardware names are seeing disparate results around earnings updates and guidance, while select health-tech and telecom-equipment reports point to resilient demand in core segments. Defense-related listings in Europe drew strong interest, highlighting ongoing support for that theme. Today’s key drivers to watch Earnings: Another heavy slate across tech, industrials, financials, and energy. Commentary on capex, AI-related spending, supply chains, and pricing power will be key for margins and guidance. Macro: US and European data drops on growth and inflation remain in focus ahead of major central bank meetings. Market-implied paths for policy continue to shift as incoming data challenge the pace and depth of any future rate moves. Policy and geopolitics: Headlines around trade, supply chains, and regional tensions are feeding into currency and commodity volatility. Stay mindful of headline risk into the weekend. Portfolio considerations Duration and curve: With long-end rates more volatile, consider how portfolio duration and curve exposure align with risk tolerance. Hedging rate sensitivity and stress-testing scenarios remains prudent. Diversification: Cross-asset moves this month have rewarded diversified exposures across regions and factors. Keep an eye on concentration risk, particularly within mega-cap tech and single-factor tilts. Liquidity: Elevated intraday swings in FX, rates, and commodities argue for maintaining ample liquidity and disciplined rebalancing protocols. Market wrap at a glance Equities: Cautious tone, modest declines in US/Europe, Asia mixed. FX: Dollar softer on the week; yen strength notable. Rates: Long-end under pressure; global curves steeper. Commodities: Precious metals bid; energy mixed. Crypto: Consolidation mode. Note: Market levels are indicative and subject to change Important disclosures This material is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Markets involve risk, including the possible loss of principal. Consider your objectives, risk tolerance, and consult a qualified financial professional before making investment decisions. Market data may be delayed or updated without notice. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. 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Pips and Basis Points

Leave a Comment / Spot FX and CFDs, Educational Blogs, Forex Basics / PhillipCapital DIFC Research Team

Understanding Pips and Basis Points in Financial Markets Table of Contents What Is a Pip in Forex Trading? How Do You Calculate Pip Value? What Is a Basis Point (BPS)? How Are Basis Points Used in Interest Rates and Bonds? What Are the Key Differences Between Pips and Basis Points? Why Do These Metrics Matter for Risk Management? Conclusion Precision is the currency of the financial world. In global capital markets, the difference between profit and loss often comes down to the smallest fractions of a number. For investors and traders navigating the complexities of asset pricing, two units of measurement are fundamental: Pips and Basis Points (bps). While they both measure minute changes in value, they serve distinct functions across different asset classes. This guide provides an in-depth analysis of these metrics, ensuring you understand how to interpret price movements whether you are trading foreign exchange currencies or analyzing central bank interest rate decisions What Is a Pip in Forex Trading? A Pip (Percentage in Point or Price Interest Point) is the standardized unit of change in a currency pair. For most currency pairs, a pip represents a movement in the fourth decimal place of the exchange rate. It is the smallest standard increment by which a currency quote can change, although modern fractional pricing has introduced “pipettes” (the fifth decimal place) for even greater precision. For example, if the EUR/USD moves from 1.1050 to 1.1051, that 0.0001 rise is equal to one pip. The JPY Exception It is crucial to note that currency pairs involving the Japanese Yen (JPY) are an exception to the four-decimal rule. In JPY pairs (like USD/JPY), a pip is represented by the second decimal place. If the USD/JPY moves from 145.50 to 145.51, that 0.01 movement constitutes one pip. When accessing Spot FX markets, understanding these nuances is critical for setting entry and exit targets. Professional trading platforms, such as those offered by Phillip Capital DIFC, provide real-time pricing where these movements are tracked instantly to ensure accurate execution. How Do You Calculate Pip Value? Calculating the monetary value of a pip is essential for position sizing and risk management. The value of a pip depends on three factors: the currency pair being traded, the exchange rate, and the trade size (lot size). The Formula For pairs where the US Dollar is the quote currency (e.g., EUR/USD), the calculation is straightforward. In a standard lot (100,000 units of currency), one pip equals $10. Standard Lot (100,000 units): 1 pip = $10 USD Mini Lot (10,000 units): 1 pip = $1 USD Micro Lot (1,000 units): 1 pip = $0.10 USD For pairs where the USD is the base currency (e.g., USD/CHF), the value floats based on the current exchange rate. Sophisticated investors often use automated calculators available on advanced trading platforms like MetaTrader 5 (MT5) to handle these computations dynamically, ensuring that margin requirements and potential P&L are clear before executing a trade. Start Trading Global Markets Ready to apply your knowledge? Access over 40 currency pairs with institutional-grade execution speeds and competitive spreads. Open An Account What Is a Basis Point (BPS)? A Basis Point, commonly referred to as “bps” (pronounced “bips”), is a unit of measure used primarily in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equal to 1/100th of 1%, or 0.01% (0.0001 in decimal form). Why Use Basis Points? The term helps eliminate ambiguity when discussing percentage changes. If a centrally banked rate is 5% and it increases by “1%”, it is unclear if the new rate is 5.05% (a 1% increase of the base) or 6% (an arithmetic increase). Using basis points clarifies this: an increase of 50 bps clearly moves the rate from 5.00% to 5.50%. This metric is the standard for fixed income markets, bond pricing, and interest rate derivatives. When you read our market analysis reports, you will frequently see changes in US Treasury yields or FED rate decisions expressed in basis points How Are Basis Points Used in Interest Rates and Bonds? Basis points are the vernacular of debt markets. They measure the spread between two interest rates, the yield of a bond, or the cost of a loan. Central Bank Policy When the US Federal Reserve or the ECB adjusts interest rates, they do so in basis points. A standard hike might be 25 bps (0.25%), while a more aggressive move would be 50 bps or 75 bps. These adjustments ripple through the economy, affecting everything from mortgage rates to the cost of leverage in CFD trading. Bond Yield SpreadsInvestors use bps to compare the yield difference between securities. For instance, if a 10-year US Treasury bond yields 4.00% and a 10-year UK Gilt yields 4.25%, the “spread” is 25 basis points. Monitoring these spreads is vital for carry trade strategies and evaluating sovereign risk. What Are the Key Differences Between Pips and Basis Points? While both terms refer to small measurements of change, their application differs significantly based on the asset class. Feature Pip Basis Point (bps) Primary Market Forex (Currencies) Fixed Income (Bonds), Interest Rates Value Definition Usually 0.0001 (4th decimal) Always 0.01% (0.0001) Context Exchange Rate Price Movement Yields, Spreads, Interest Rates Example EUR/USD moving 1.1200 to 1.1205 Fed Rate moving 5.00% to 5.25% For multi-asset investors managing a diverse portfolio—perhaps holding Futures positions alongside currency trades—distinguishing between these units is vital for accurate performance reporting and strategy alignment. Stay Ahead of Market Moves Get Daily Market Insights Receive expert analysis on interest rate decisions and currency fluctuations directly from our DIFC desk. Read Market Updates Why These Metrics Matter for Risk Management Understanding pips and basis points is not just academic; it is the foundation of calculating risk and reward (R:R). Inadequate understanding can lead to incorrect position sizing, where a trader might underestimate the exposure of a trade. Spread Costs: The cost of trading is often measured in pips (for FX) or basis points (for

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January 22 – Daily Market Update

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

22 January 2026 – Daily Market Updates Market snapshot (as of 06:21 am ET; pricing may be delayed) S&P 500 futures: 6953.5 (+0.63%) Stoxx Europe 600: 609.96 (+1.21%) Nikkei 225: 53688.89 (+1.73%) Spot gold: 4828.54 (-0.06%) Bitcoin: 89878.29 (-0.34%) Global overview Risk appetite improved across regions, with equity markets extending gains and leadership concentrated in technology, semiconductors, and other AI‑linked beneficiaries. European benchmarks advanced broadly, while Japan’s main equity index outperformed in Asia amid ongoing enthusiasm for capex tied to data center build-outs and next‑generation compute. US equity futures point to a firmer open, continuing a rebound that began earlier in the week. Under the surface, the tone remains selective. Growth and quality factors are in favor, while defensive areas lag. Price action continues to be driven by expectations for a resilient global demand backdrop, tempered by elevated rates volatility following recent swings in long‑dated sovereign bonds. Equities US: Futures suggest a second straight session of gains, led by large‑cap tech and hardware suppliers leveraged to cloud and AI infrastructure. Earnings season is in focus, with investors scrutinizing guidance on margins, inventory, and capex plans. Watch commentary on supply chain normalization, the pace of enterprise IT spending, and the durability of pricing power. Europe: The region outperformed with cyclicals (autos, industrials) and technology ahead, while select consumer and healthcare names traded mixed on stock‑specific news. The breadth of the move improved versus earlier in the month, a constructive sign for risk appetite if sustained. Asia: Japanese equities rallied, supported by exporters and manufacturers tied to semiconductor equipment and components. Elsewhere in the region, performance was uneven as investors balanced supportive policy signals against concerns about growth differentials. Rates and FX Sovereign bonds: Following a bout of volatility in parts of the global rates complex, yields were little changed to slightly lower in early US trading. Curves remain modestly steeper versus recent tights, reflecting uncertainty around the timing and extent of policy easing this year. Liquidity and positioning in longer‑dated maturities bear watching after recent outsized moves. Currencies: The dollar traded mixed, modestly softer against pro‑cyclical peers and steadier versus traditional havens. The yen remained choppy as rate differentials and bond market dynamics offset each other. The euro ticked higher alongside firmer European risk assets. Commodities Precious metals: Gold consolidated near recent highs, holding the bulk of its multi‑week advance despite calmer headlines. Support continues to stem from central‑bank purchases, portfolio diversification flows, and lingering macro hedging demand. Energy: Crude was range‑bound, with traders weighing supply developments against signs of steady demand. Refining margins and inventory data remain near-term catalysts. Natural gas pricing was mixed as seasonal patterns meet variable weather forecasts. Industrial metals: Copper and related metals were mixed, reflecting a tug‑of‑war between constructive medium‑term electrification trends and near‑term growth and inventory considerations. Digital assets Crypto prices were slightly softer in early dealings. Flows into major tokens have moderated, with market depth and implied volatility stabilizing after recent bouts of activity. Correlations to equities remain episodic and sector‑specific rather than market‑wide. Themes to watch AI‑driven capex cycle: Hardware suppliers across memory, storage, networking, and power components continue to benefit from sustained orders tied to data centers and edge compute. Investors are watching for evidence that demand is broadening beyond hyperscalers into enterprise and telecom verticals. Earnings quality over quantity: With valuations elevated in select segments, guidance on free cash flow conversion, pricing discipline, and working‑capital management may matter as much as headline beats. Expect dispersion to remain high. Rates path and liquidity: Markets are reassessing the glide path for global policy rates. Any renewed stress in long‑maturity bonds could spill over into risk assets and FX, making auction outcomes and central‑bank communication particularly important in the weeks ahead. Market breadth: Participation outside mega‑cap leadership is improving but remains inconsistent. Sustained breadth would bolster the durability of the rally. Today’s calendar and catalysts Corporate earnings: A heavy slate from technology, industrials, materials, and consumer staples. Focus on demand outlooks, backlog health, and 2026 capex intentions. Data and policy: Later‑week releases on growth and labor, plus appearances from central‑bank officials, will help refine expectations for the policy path. Auction schedules in major bond markets are also on the radar. Positioning lens Sentiment: Short‑term sentiment indicators have moved back toward neutral from cautious, with downside hedging demand easing. That said, the options market still prices meaningful event risk around earnings. Flows: ETFs tied to technology and broad beta saw net inflows, while defensive sector funds experienced modest outflows. Credit markets remain orderly with healthy primary issuance. Bottom line Markets are leaning risk‑on, powered by ongoing optimism around the multi‑year investment cycle in AI infrastructure and a still‑constructive growth backdrop. The main pivots for direction near term are corporate guidance, the evolution of rate expectations, and the stability of longer‑dated bond markets. Maintaining diversification across factors and regions remains prudent as cross‑asset volatility ebbs and flows. Important notice: This content is provided for information only and does not constitute investment advice or an offer to buy or sell any securities. Market prices are illustrative, may be delayed, and are subject to change. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a

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Price-to-Book Ratio

Leave a Comment / Deliverable Equities, Educational Blogs, Stock Valuations / PhillipCapital DIFC Research Team

Price-to-Book Ratio (P/B) The Essential Guide for Identifying Undervalued Stocks Table of Contents What Is the Price-to-Book Ratio (P/B) and How Is It Calculated? What Does a High vs. Low P/B Ratio Tell Investors? Why Is the P/B Ratio Critical for Banking and Financial Stocks? How Does the Price-to-Book Ratio Differ from Price-to-Earnings (P/E)? What Are the Limitations of Using P/B Ratio in Tech and Service Sectors? Conclusion: Integrating P/B into Your Investment Strategy What Is the Price-to-Book Ratio (P/B) and How Is It Calculated? The Price-to-Book Ratio (P/B) is a fundamental valuation metric used by investors to compare a company’s current market value to its book value. In essence, it tells you how much the equity market is willing to pay for each dollar of a company’s net assets. For value investors, the P/B ratio is a primary tool for spotting potential bargains in the global equity markets. To understand this metric deeply, one must look at its two components: Market Price per Share: The current trading price of the stock on an exchange. Book Value per Share (BVPS): The theoretical value of shareholders’ equity if all assets were sold and liabilities paid off. The Formula: Alternatively, it can be calculated by dividing the company’s total Market Capitalization by its total Book Value (Total Assets minus Total Liabilities). For investors analyzing Global Equities (Non-US), this ratio provides a “reality check” against market hype. It anchors the stock price to tangible balance sheet data rather than just future earnings projections, which can be volatile. What Does a High vs. Low P/B Ratio Tell Investors? Interpreting the P/B ratio requires context, as “good” or “bad” values often depend on the specific industry and market conditions. What does a P/B ratio of less than 1.0 mean? A P/B ratio under 1.0 often suggests that the market believes the company’s assets are undervalued, or that the business is earning a very poor return on its assets (ROA). For value investors, this is the “sweet spot” for investigation. It could indicate that if the company were liquidated today, shareholders might receive more than the current share price. However, investors must be cautious of “value traps”—companies facing fundamental issues like potential bankruptcy or declining industries. What does a P/B ratio greater than 3.0 mean? A higher P/B ratio typically indicates that investors expect high future growth and are willing to pay a premium for the company’s earnings potential. This is common in asset-light industries where the primary value comes from intellectual property rather than physical machinery. Key Insight: When trading Deliverable Equity – US Stocks, you will often see widely varying P/B ratios. A software company might trade at 10x book value, while a manufacturing firm trades at 1.5x. Understanding these sector norms is vital for accurate valuation. Start Building Your Value Portfolio Access global markets and identify undervalued opportunities today Open an account Why Is the P/B Ratio Critical for Banking and Financial Stocks? The Price-to-Book ratio is arguably the most important valuation metric for the financial services sector, including banks, insurance companies, and investment firms. Unlike technology or service companies, financial institutions hold assets that are marked to market (valued at current market prices) and are highly liquid. Their balance sheets consist primarily of cash, bonds, and loans, which makes their “Book Value” an extremely accurate representation of their tangible worth. Asset Quality: For banks, a P/B ratio significantly below 1.0 might signal that the market doubts the quality of the bank’s loan portfolio (i.e., fears of non-performing loans). Return on Equity (ROE): There is a strong correlation between a bank’s P/B ratio and its ROE. Banks that generate higher returns on shareholder capital typically command higher P/B multiples. For clients interested in GCC Stocks, where the banking sector is a dominant heavyweight, mastering the P/B ratio is essential for making informed decisions. It allows you to quickly compare the relative valuations of major regional banks against their net asset values. Why Is the P/B Ratio Critical for Banking and Financial Stocks? While both metrics are staples of fundamental analysis, they serve different purposes and answer different questions for the investor. P/B Ratio (Balance Sheet Focus): Focuses on what the company owns. It is a measure of solvency and asset value. It is more stable because book value is cumulative and less volatile than quarterly earnings. It is best used for capital-intensive businesses (manufacturing, energy, finance). P/E Ratio (Income Statement Focus): Focuses on what the company earns. It measures how much you are paying for every dollar of profit. It is highly sensitive to economic cycles and one-off accounting charges. When to use which? If you are evaluating a distressed company with negative earnings, the P/E ratio is useless (undefined). In this scenario, the P/B ratio becomes your primary guide to valuation, helping you assess if the stock is trading below its liquidation value. For a balanced portfolio, sophisticated investors often use Wealth Management & Structured Notes strategies that consider both asset protection (P/B focus) and earnings growth (P/E focus). What Are the Limitations of Using P/B Ratio in Tech and Service Sectors? The greatest limitation of the P/B ratio in the modern economy is its inability to account for intangible assets. In the digital age, companies like Alphabet (Google), Apple, or Microsoft derive the vast majority of their value from things that do not appear on the balance sheet in the same way a factory does: Brand equity Proprietary software and code Patents and intellectual property Human capital and R&D Because standard accounting principles (like GAAP or IFRS) often expense R&D costs rather than capitalizing them, the “Book Value” of a tech company is frequently understated. Consequently, their P/B ratios can appear astronomically high (e.g., 20x or 50x). If you are asking, “Is a high P/B ratio bad for tech stocks?” the answer is usually no. For these sectors, metrics like Price-to-Sales (P/S) or Enterprise Value-to-EBITDA are often more appropriate. Investors utilizing our Futures & Options platforms to hedge tech exposure

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January 21 – Daily Market Update

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

21 january 2026 – Daily Market Updates Daily Markets Briefing Market Snapshot (as of 06:16 am EST; values may be delayed) S&P 500 Futures: 6842 (+0.18%) Stoxx Europe 600: 600.03 (-0.46%) US 10-Year Treasury Yield: 4.281% (down ~0.01) Nikkei 225: 52774.64 (-0.41%) Spot Gold: 4866.3 (+2.16%) Overview US equity futures are stabilizing after a sharp risk-off session, while Europe trades softer and Asia finished mixed. Government bond yields are easing at the margin as investors reassess growth and policy expectations, and safe-haven bids remain evident in precious metals. Weather-driven energy dynamics and a busy corporate earnings slate are in focus. Equities United States: Futures indicate a modest rebound following the largest S&P 500 pullback in several months. The tone remains headline-sensitive with investors weighing earnings updates, policy chatter from global forums, and the path for growth-sensitive sectors. Market breadth and factor rotations bear watching after a burst of volatility. Europe: The region’s benchmark is lower, led by consumer and health care laggards, while select luxury and industrial names outperform on company-specific updates. Energy and utilities see support from higher fuel price expectations into a colder weather pattern. Asia: Japanese stocks slipped as recent rate and currency volatility kept risk appetite in check, though losses were contained by a pullback in long-dated yields. Other major regional markets were mixed, with pockets of strength in technology and internet names. Rates and Credit US Treasuries: The 10-year yield is edging lower, reflecting a small bid for duration after yesterday’s equity selloff. The curve remains sensitive to incoming growth data, earnings guidance on capex and labor, and evolving central-bank rhetoric. Global sovereigns: Longer-maturity Japanese bonds recovered some ground after a volatile stretch, helping to soothe broader rate jitters. European core yields are steady to slightly lower, with peripheral spreads broadly contained. Credit: Investment-grade and high-yield spreads widened modestly with the equity drawdown but remain within recent ranges. Primary issuance is active into earnings season, with investors selective on leverage and interest coverage profiles. FX and Commodities Gold: The metal extends gains on haven demand and lower real-yield impulses. Flows into precious metals remain supported by diversification and geopolitical hedging. Energy: Natural gas prices are elevated as forecasts point to an intense cold spell across key North American demand and production hubs. Winter reliability and storage draws are back in focus for utilities and upstream names. Crude is firmer but range-bound as supply discipline and demand seasonality offset growth and policy uncertainties. FX: The dollar is mixed against majors, with rate differentials and risk sentiment driving intraday swings. Yen and select European currencies are stable after the latest moves in global bonds. Corporate Highlights Airlines: A leading US carrier posted better-than-expected quarterly results, lifting the group on improving revenue trends and disciplined capacity plans. Investors are watching commentary on business travel and fuel hedging into late winter. Media and Streaming: A major streaming platform is under pressure premarket after issuing a cautious outlook and pausing buybacks amid higher content and integration spending. Markets are parsing visibility on subscriber growth, pricing, and cash-flow timing. Consumer Staples: A large packaged-food company is weaker after a significant shareholder registered stock for potential sale, reviving focus on portfolio mix, pricing power, and margins. Health Care, Financials, Insurance: Several bellwethers report before the US open. Watch loan growth and deposit costs for financials, medical device and pharma pipelines in health care, and catastrophe loss trends for insurers. Europe: A diagnostics firm rallied on reports of strategic review considerations, while a UK luxury brand gained after signs of early progress in a turnaround plan. Key Drivers to Watch Earnings season: Guidance on 2026 capex, AI-related spend, operating leverage, and margin durability is likely to set the tone for sector rotations. Macro and policy: Remarks from global policy gatherings, central-bank speakers, and upcoming data on growth and inflation will shape rate expectations and the risk premium across assets. Weather and infrastructure: The impending cold snap may ripple through energy markets, midstream logistics, and short-term industrial output. Market structure: Elevated options activity and systematic flows can amplify intraday volatility; monitor positioning, skew, and realized vs. implied vol. Takeaways for Investors Quality bias and liquidity discipline remain important as markets navigate cross-currents from policy headlines, earnings dispersion, and winter energy dynamics. Balance duration and equity risk: modest duration exposure can buffer equity drawdowns if growth scares resurface, while selective cyclical exposure can benefit from resilient demand pockets. Focus on cash flow visibility: companies demonstrating pricing power, cost control, and clear capital-return frameworks may be rewarded as the bar for guidance rises. Calendar (near term) US corporate earnings: Health care, financials, industrials, and tech updates throughout the week. Global data: Preliminary manufacturing and services readings, housing indicators, and weekly labor prints in the US. Policy watch: Central-bank commentary and fiscal headlines from global forums. Disclosure This material is provided for information purposes only and does not constitute investment advice, a solicitation, or a recommendation to buy or sell any security or strategy. Market data are subject to change and may be delayed. Consider your objectives and risk tolerance before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high

January 21 – Daily Market Update Read More »

Bid-Ask Spreads In Forex

Leave a Comment / Educational Blogs, Forex Basics, Spot FX and CFDs / PhillipCapital DIFC Research Team

Bid-Ask Spreads In Forex Table of Contents What Exactly Is a Bid-Ask Spread in Forex? How Is the Spread Calculated in Pips? Fixed vs. Variable Spreads: Which Is Better for Your Strategy? What Factors Cause Spreads to Widen or Tighten? How Do Spreads Impact Your Overall Trading Profitability? What Strategies Can help Manage and Minimize Spread Costs? Conclusion What Exactly Is a Bid-Ask Spread in Forex? In the global foreign exchange markets, currencies are never traded at a single price point. Instead, every currency pair—whether it is a major pair like EUR/USD or an exotic pair—has two distinct prices: the Bid price and the Ask price. The Bid price represents the highest price a buyer (the broker or the market) is willing to pay for a currency pair. This is the price at which you, as a trader, can sell. Conversely, the Ask price (sometimes called the “Offer”) is the lowest price at which a seller is willing to sell. This is the price at which you can buy. The Bid-Ask Spread is simply the difference between these two figures. It represents the primary transaction cost of opening a trade. For example, if you are trading Spot FX and the EUR/USD is quoted at 1.1050/1.1052, the spread is the difference between 1.1052 and 1.1050. While this cost might seem negligible on a single trade, it is a critical component of liquidity and market structure that professional investors must monitor closely. How Is the Spread Calculated in Pips? To understand the cost of a trade, you must calculate the spread in pips (Percentage in Point). For most major currency pairs, a pip is the fourth decimal place. The formula is straightforward: Spread = Ask Price – Bid Price Let’s look at a practical calculation using the GBP/USD pair: Ask Price: 1.2505 Bid Price: 1.2502 Calculation: 1.2505 – 1.2502 = 0.0003 In this scenario, the spread is 3 pips. However, for pairs involving the Japanese Yen (JPY), the pip is the second decimal place. If the USD/JPY is quoted at 130.50/130.52, the difference is 0.02, which equals 2 pips. Understanding this calculation is vital when trading Spot FX & CFDs, as it directly affects where your trade needs to move just to break even. Start Trading with Competitive Spreads Experience institutional-grade execution on the world’s most popular trading platform Open an Account Fixed vs. Variable Spreads: Which Is Better for Your Strategy? When selecting a trading environment, you will typically encounter two types of spreads: fixed and variable (floating). Fixed Spreads remain constant regardless of market conditions. Whether the market is calm or highly volatile, the spread stays the same. This provides certainty regarding transaction costs, which can be beneficial for traders who rely on precise cost calculations for automated strategies. Variable Spreads, which are more common in the interbank market and offered by brokers like Phillip Capital DIFC, fluctuate based on supply and demand. In times of high liquidity—such as the overlap between the London and New York sessions—variable spreads on major pairs can be extremely tight, often tighter than fixed spreads. This offers a significant advantage for active traders seeking the best possible market price. However, during major economic news releases or low-liquidity periods, these spreads can widen to reflect market risk. For most professional and retail traders seeking authentic market access, variable spreads are often preferred as they reflect true market depth and liquidity What Factors Cause Spreads to Widen or Tighten? The Bid-Ask spread is not static; it “breathes” with the market. Three primary factors influence its width: Liquidity: This is the most significant factor. Major pairs like the EUR/USD or USD/JPY typically have the tightest spreads because billions of dollars are traded in them daily. There is always a buyer for every seller. In contrast, Minor and Exotic Currency Pairs, such as the USD/TRY (Turkish Lira) or USD/ZAR (South African Rand), often have wider spreads due to lower trading volumes. Volatility: During periods of economic uncertainty or immediately following critical data releases (like US Non-Farm Payrolls), market participants may pull their orders, causing liquidity to dry up and spreads to widen rapidly. Time of Day: The Forex market operates 24/5, but liquidity is not uniform. Spreads are generally tightest when major sessions overlap (e.g., afternoon in Dubai when London and New York are both open). Conversely, during the “rollover” period (typically 1:00 AM Dubai time), spreads may temporarily widen as banking institutions reset for the next trading day. Access Global Liquidity Trade EUR/USD, GBP/USD, and other majors with deep market liquidity and fast execution. Explore Forex Offerings How Do Spreads Impact Your Overall Trading Profitability? Many novice investors overlook the spread, focusing solely on profit targets. However, the spread is an upfront cost that must be overcome before a trade becomes profitable. For Scalpers and Day Traders, who open and close numerous positions throughout the day to capture small price movements, the spread is critical. If you are targeting a 10-pip profit, a 2-pip spread represents 20% of your potential gain. Over hundreds of trades, a slightly wider spread can significantly erode net returns. For Swing Traders or Position Traders who hold trades for days or weeks, the spread is less impactful relative to the total potential profit. Since these traders aim for moves of 50, 100, or more pips, a small difference in the spread is a minor percentage of the overall trade. Effective Forex Market Structure knowledge helps traders time their entries to avoid periods of widened spreads, thereby protecting their profit margins. What Strategies Can help Manage and Minimize Spread Costs? While you cannot eliminate the spread, you can manage its impact on your portfolio: Trade During Peak Hours: Align your trading schedule with the most liquid market sessions. For UAE investors, the sweet spot is typically between 11:00 AM and 8:00 PM, covering the London and early New York sessions. Focus on Major Pairs: If you are sensitive to transaction costs, prioritize highly liquid pairs like EUR/USD or GBP/USD, where spreads are

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January 20 – Daily Market Update

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

20 January 2026 – Daily Market Updates Daily Market Briefing Risk tone softened across global markets this morning as government bond yields climbed and investors reassessed growth, policy, and geopolitical risks. Equities in the US and Europe are lower ahead of the New York open, with higher rates pressuring longer-duration assets and more cyclical corners of the market. Haven demand is evident in precious metals, while digital assets continue to retrace recent gains. Top themes today Higher-for-longer yields: Long-dated Japanese government bond yields surged again, with the super-long end moving above 4% for the first time in decades. The move is filtering through global rates, helping push US 10-year yields toward the mid‑4% area and lifting European benchmarks. A mix of domestic policy proposals, rising issuance needs, and ebbing deflation dynamics in Japan is drawing capital back onshore and tightening global financial conditions at the margin. Repricing growth and policy risk: Investors are weighing renewed trade and tariff rhetoric alongside ongoing fiscal and industrial policy initiatives in major economies. Concern that frictions could nudge inflation and funding costs higher is tempering risk appetite, especially after an extended run-up in equities and a strong stretch of risk-on positioning. Commodities and havens bid: Gold vaulted to fresh record territory and silver advanced as investors sought ballast against rate and geopolitical uncertainty. Energy is more mixed, with supply headlines and growth concerns offsetting each other. Rotations under the hood: High-beta pockets such as crypto-related equities, semiconductors, and other momentum areas are under pressure in early trading. By contrast, precious‑metals miners and selected defensives are finding support from the shift toward safety and rising metals prices. Earnings and deal flow: The reporting calendar remains active. Homebuilders, airlines, and large-cap media/tech are in focus today and after the close, offering read-throughs on housing demand, travel trends, and streaming/advertising fundamentals. Health care saw fresh M&A activity, underscoring ongoing interest in late‑stage pipelines and specialty treatments. Markets at a glance (early US hours) Equities: US index futures are lower, with broad-based weakness led by tech hardware, chips, and other rate-sensitive growth names. Europe’s main benchmark is down roughly 1%–1.5%, with cyclicals lagging. Asia was mixed overnight. Rates: US Treasury yields are higher across the curve, led by the long end. European core yields are up as well. Japan’s 30‑ and 40‑year yields jumped, echoing a multi-month trend of normalization in the country’s rate structure. Currencies: The dollar is firmer on rate differentials and risk aversion. The yen’s path remains tied to the sharp move in domestic yields and evolving Bank of Japan expectations. Commodities: Gold is at record levels; silver firmer. Oil is range‑bound as demand worries offset supply considerations. Digital assets: Bitcoin and peers are softer, extending a recent pullback as tighter financial conditions dent appetite for higher‑volatility assets. What to watch Policy signals: Any official commentary on trade, tariffs, or fiscal priorities that could affect inflation and bond supply expectations. Central bank tone: Remarks from major central bank officials on the growth–inflation mix and balance sheet paths, particularly amid the move higher in global yields. Primary issuance: Corporate and sovereign supply remains elevated; concession levels and order books will be a useful barometer of risk appetite. Earnings: Housing, travel, and streaming/advertising updates could sway sector leadership and broader sentiment. Positioning and volatility: After an extended period of optimism and light hedging, markets may remain sensitive to negative surprises; watch skew and term structure in options for signals of stress or stabilization. Strategy considerations Duration and curve: With long-end yields pushing higher globally, duration risk remains front and center. Some investors may prefer to keep duration moderate and consider gradual laddering or barbell approaches while liquidity is solid. Quality and balance sheets: Elevated rates continue to favor companies with robust cash flow, manageable leverage, and pricing power. Balance-sheet strength can help buffer against funding-cost uncertainty. Diversification: Maintain a mix that balances cyclical exposure with defensives and real assets. Precious metals can help diversify equity and rate risk, though they bring their own volatility. Hedging: Reassess equity and credit hedges given shifting correlations and the pickup in realized volatility. Currency hedges may be relevant where rate differentials are moving quickly. Calendar highlights (today) US corporates: Homebuilding, airlines, and large-cap media/technology reports Global: Ongoing sovereign and investment-grade issuance; selected macro releases across housing and industry This publication is for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Market levels and performance references reflect conditions in early US trading and may change. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. January 20 – Daily Market Update January 20, 2026 20 January 2026 – Daily Market Updates Daily Market Briefing… Read More January 19 – Daily Market Update January 19, 2026 19 January 2026 – Daily Market Updates Markets Daily: Risk… Read More January 16 – Daily Market

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Futures Fundamentals

Leave a Comment / Uncategorized, Educational Blogs, Exchange Traded Derivatives, Futures Contracts / PhillipCapital DIFC Research Team

Futures Fundamentals A Strategic Guide to Capital Markets Table of Contents What Are Futures Contracts and How Do They Work? Why Do Investors Trade Futures? Hedging vs. Speculation What Are the Key Mechanics of a Futures Trade? What Types of Futures Markets Can I Access? How Does Leverage Impact Futures Trading? Conclusion: Navigating the Futures Landscape What Are Futures Contracts and How Do They Work? At its core, a futures contract is a legally binding agreement to buy or sell a standardized asset at a predetermined price on a specific future date. Unlike “spot” trading, where assets are exchanged immediately for cash, futures allow participants to lock in prices today for transactions that will occur weeks or months down the line. These instruments are standardized by exchange regulations, meaning every contract for a specific asset (like Gold or the S&P 500) has the same quantity, quality, and expiration rules. This standardization ensures high liquidity, allowing traders to enter and exit positions seamlessly on regulated exchanges like the CME, ICE, or DGCX. For investors seeking to understand the broader derivatives landscape, it is helpful to grasp the distinction between different position types. You can explore our deep dive on Long vs Short Positions in Derivatives to see how these contracts allow for profit potential in both rising and falling markets. Why Do Investors Trade Futures? Hedging vs. Speculation Futures markets generally serve two primary types of market participants: hedgers and speculators. Understanding which category you fall into is the first step in building a robust trading strategy. Hedgers: These are often institutions, corporations, or portfolio managers using futures to manage price risk. For example, an airline might buy crude oil futures to protect against rising fuel costs, or a portfolio manager might sell equity index futures to protect a stock portfolio during a downturn. This aligns closely with sophisticated Sector Rotation Strategies, where protecting capital is as vital as growing it. Speculators: These traders accept price risk in pursuit of profit. They analyze market data to predict price movements. Because futures allow for short selling as easily as buying, speculators can capitalize on market volatility in either direction without ever owning the physical asset. Start Your Trading Journey Unlock Global Markets Access 250+ futures products across US, Europe, and Asian exchanges. Open An Account What Are the Key Mechanics of a Futures Trade? Successful futures trading requires mastering specific terminology and mechanics that differ from traditional equity investing. Expiration Date: Every futures contract has a finite lifespan. Traders must either close their position before this date or, in some cases, prepare for physical delivery (though most financial futures are cash-settled). Initial Margin: This is the capital required to open a position. Unlike buying a stock where you pay the full value, futures require a performance bond—often just 3-10% of the contract’s total notional value. Mark-to-Market: Futures accounts are settled daily. If your position gains value, the profit is added to your account balance at the end of the trading day. Conversely, losses are deducted immediately, which is why maintaining sufficient liquidity is crucial. What Types of Futures Markets Can I Access? One of the greatest advantages of futures is the sheer diversity of asset classes available from a single trading account. Equity Indices: Trade the aggregate performance of entire economies, such as the S&P 500, NASDAQ 100, or the Nikkei 225. This provides broad market exposure without selecting individual stocks. Commodities: This includes Hard Commodities like Gold, Silver, and Copper, and Soft Commodities like Coffee, Sugar, or Wheat. Energy markets (Crude Oil and Natural Gas) are particularly popular for their volatility. Currencies (FX): Futures contracts on major currency pairs (EUR/USD, JPY/USD) offer a regulated alternative to spot forex. For those new to currency markets, our guide to Forex Basics provides essential context on how currency pairs move. Interest Rates: These allow institutions to hedge against changes in bond prices or central bank rates, a critical component of fixed-income valuation. How Does Leverage Impact Futures Trading? Leverage is a double-edged sword in futures trading. It allows you to control a large contract value with a relatively small amount of capital (margin). For instance, if a crude oil contract is valued at $70,000, you might only be required to post $7,000 as margin. If the price of oil rises by 10%, your $7,000 investment could effectively double (a 100% return on margin). However, if the price drops by 10%, you could lose your entire initial deposit. Because of this, risk management is non-negotiable. Professional traders utilize stop-loss orders and strictly limit the percentage of capital allocated to any single trade. Access Expert Insights Stay Ahead of the Curve Read daily technical analysis and fundamental market updates from our desk. View Daily Market Updates Conclusion: Navigating the Futures Landscape Futures fundamentals encompass more than just buying and selling contracts; they represent a sophisticated approach to capital efficiency and risk management. Whether you are looking to hedge an existing portfolio against volatility or speculate on global macroeconomic trends, futures offer the liquidity and flexibility required by modern investors. However, the power of leverage demands respect and education. By understanding the mechanics of expiration, margin, and asset classes, you can position yourself to navigate these markets effectively. At Phillip Capital DIFC, we provide the regulated infrastructure and global market access necessary for you to trade with confidence. Frequently Asked Questions (FAQs) What is the main difference between Futures and Options? The key difference lies in obligation versus right. A futures contract is an obligation to buy or sell the asset at the expiration date, meaning the trade must be settled. An options contract gives you the right (but not the obligation) to buy or sell. Consequently, futures prices move linearly with the asset, while options are affected by time decay and volatility. Will I actually receive 1,000 barrels of oil if I hold a contract? This is a common myth. While futures can result in physical delivery, the vast majority of traders are “speculators” who

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January 19 – Daily Market Update

Leave a Comment / Market Updates, Daily Market Updates / PhillipCapital DIFC Research Team

19 January 2026 – Daily Market Updates Markets Daily: Risk appetite cools as trade tensions resurface; earnings and central banks in focus At a glance Equities: European benchmarks slipped and US equity futures tracked lower; Asia finished mixed with Japan softer. Rates and FX: Short-dated core yields eased; haven currencies outperformed while the dollar was little changed on balance. Commodities: Precious metals advanced to new highs; energy prices were range-bound. Global overview A cautious tone gripped markets to start the week as investors weighed renewed trade rhetoric between the US and Europe alongside uneven global growth signals. With US cash equities closed for the Martin Luther King Jr. holiday, price action was led by Europe and Asia. Cyclical pockets most exposed to transatlantic trade—autos, luxury and select industrials—lagged, while defensives and commodity-linked names found support. The bid for safety was evident in firmer precious metals, modest strength in the Swiss franc, and a small rally in front-end European government bonds. Credit risk gauges ticked wider, reflecting a tentative pullback in risk appetite rather than broad stress. Regional highlights Europe: Stocks declined broadly, led by export-heavy sectors. A handful of company-specific downgrades and cautious outlooks added to pressure in consumer discretionary. Semicap equipment outperformed after strong order indications from one supplier, bucking the tech-sector drift. US: Futures pointed lower with volumes thinner into the holiday. Earnings season accelerates this week, and guidance tone will be key given elevated valuation starting points. Asia: Japan underperformed on political headlines and higher-rate concerns ahead of the central bank meeting later in the week. China-related assets were mixed after data signaled slower momentum into year-end, reinforcing the picture of uneven domestic demand. Policy and macro Trade: European officials signaled they are preparing responses should broad new US import levies materialize. Markets are watching for any move from rhetoric to policy that could ripple through supply chains and margins. Growth: Recent Chinese figures showed moderation, consistent with a gradual, bumpy post-pandemic normalization amid global protectionism. In Japan, a snap election call injected uncertainty into the policy outlook, with bonds softening on the risk of looser fiscal settings. Central banks: The Bank of Japan meets Friday with markets parsing any tweaks to guidance. Several smaller central banks in Europe and Asia also decide policy this week. Earnings lens The next leg of the rally hinges on delivery. With indices near highs, there’s less room for earnings misses or cautious outlooks. Focus areas: Top-line resilience vs. FX headwinds in Europe Margin trends in consumer and industrials given input-cost normalization AI- and cloud-driven capex durability for semis and software Credit quality and deposit dynamics for US regional banks Week ahead: key markers to watch Monday: US markets closed (MLK Day); Canada inflation. Tuesday: Euro-area and Germany surveys; UK labor data; early US bank and travel/streaming results. Wednesday: UK inflation; US housing and construction indicators; high-profile policy and corporate appearances at the annual business forum in Switzerland. Thursday: US GDP (advance), personal income and PCE inflation; labor-market claims; multiple EM/DM rate decisions. Friday: Japan CPI and policy decision; preliminary PMIs across major economies; UK and Canada retail updates; US consumer sentiment. Cross-asset moves Equities: Pullback concentrated in trade-sensitive sectors; defensives and selected commodity names fared better. Expect positioning to rebalance around earnings beats/misses and guidance. Rates: Front-end core yields dipped as growth and policy uncertainty nudged duration buyers back in; long-end moves were contained. FX: Dollar mixed; CHF and JPY found support on haven demand; high-beta FX lagged. Commodities: Gold and silver extended gains on geopolitical and policy hedging; oil held in a tight band as supply risks met soft demand signals. What matters from here Policy path vs. rhetoric: Concrete steps on tariffs would have broader implications for inflation, margins and central bank reaction functions; headlines alone can keep volatility elevated. Earnings credibility: With lofty multiples, guidance for 2026 profit trajectories may steer leadership more than backward-looking beats. Liquidity and flows: Recent months have seen strong inflows into US equity funds, cushioning dips; a reversal would amplify any earnings disappointments. Credit as a canary: Monitoring spread moves in sub-investment grade as a real-time gauge of risk tolerance. The market is treating trade salvos as a tail risk rather than a base case, but pricing in a higher risk premium across trade-exposed equities and credit. Near term, earnings and central bank messaging are likely to dominate. Expect choppy trading around guidance, with quality balance sheets and visible cash flows better positioned if volatility persists. This publication is for information only and does not constitute investment advice or a recommendation to buy or sell any security. Markets are volatile and past performance is not indicative of future results. Consider your objectives and risk tolerance before making investment decisions. Disclaimer: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors as you could sustain losses in excess of deposits. The products are intended for retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. The content of the Website must not be construed as personal advice. For retail, professional and eligible counterparty clients. Before deciding to trade any products offered by PhillipCapital (DIFC) Private Limited you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. Rolling Spot Contracts and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of our retail client accounts lose money while trading with us. You should consider whether you understand how Rolling Spot Contracts and CFDs work, and whether you can afford to take the high risk of losing your money. January 19 – Daily Market Update January 19, 2026 19 January 2026 –

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Weekly Global Market News – January 26

January 23 – Daily Market Update

Pips and Basis Points

January 22 – Daily Market Update

Price-to-Book Ratio

January 21 – Daily Market Update

Bid-Ask Spreads In Forex

January 20 – Daily Market Update

Futures Fundamentals

January 19 – Daily Market Update

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