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Futures Fundamentals

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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 15 – Daily Market Update

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15 January 26 – Daily Market Updates Markets Daily — Broad Market Update Tone at a glance Risk appetite is firmer in early US hours as technology strength and improving breadth underpin equities, while commodities trade mixed and volatility remains contained. Market snapshot Nasdaq 100 futures: 25837.75 (+0.81%) WTI crude (front-month): 59.77 (-3.53%) Stoxx Europe 600: 613.88 (+0.38%) Nikkei 225: 54110.5 (-0.42%) Spot silver: 91.26 (-2.04%) Note: Market data may be delayed and is for informational purposes only. Global overview Equities: Technology-led gains are supporting US futures, with investors rotating selectively into growth areas tied to compute, data infrastructure, and semiconductors. Europe is modestly higher, paced by cyclicals and select financials, while Japan eased after a strong multi-month run as investors reassess valuations and currency moves. Commodities: Crude oil is lower as geopolitical risk premiums ebb and supply expectations stabilize; refined products are mixed. Precious metals are softer alongside a steady dollar and firmer real yields, while industrial metals show a slight bid on incremental signs of demand resilience. Breadth and style: After a period of improved participation across sectors, leadership remains a tug-of-war between mega-cap tech and economically sensitive groups. Small and mid caps have shown better relative tone lately, helped by easing credit anxieties and hopes for durable earnings improvement, but momentum still gravitates to AI-linked beneficiaries. Volatility: Implied volatility across major equity benchmarks remains subdued, consistent with a “climb the wall of worry” backdrop. Low vol can amplify reactions to data surprises, earnings guidance, or policy headlines. US session focus Earnings: Early results from large financial institutions and bellwethers across technology hardware and software will anchor the narrative on credit quality, deposit trends, AI-related capex, and enterprise demand. Management guidance on margins and capex plans is a key swing factor for sentiment. Data and policy: Investors are watching weekly labor indicators, housing and production updates, and any central bank commentary for clues on the path of growth, inflation, and policy rates. The market remains sensitive to shifts in rate-cut expectations and to evidence of either reacceleration or cooling in activity. Europe and UK European shares are supported by a mix of industrials, financials, and healthcare. Recent data suggest tentative stabilization in activity, though margin commentary remains front of mind in consumer and luxury segments. In the UK, manufacturing and services readings are being watched for confirmation of a gradual improvement in output and pricing pressures. Asia-Pacific Japan’s equity benchmark dipped modestly after a significant year-to-date advance, with investors weighing earnings revisions against currency dynamics and potential policy normalization. In broader Asia, tech supply-chain names continue to benefit from resilient demand for compute and memory, while exporters monitor global orders and shipping costs. Sectors to watch Semiconductors and equipment: Upbeat capex intentions across the compute/AI stack continue to filter through to suppliers, sustaining order backlogs and utilization outlooks. Watch commentary on lead times, tool deliveries, and supply normalization. Energy: Crude weakness reflects shifting risk premiums and balanced supply expectations. Keep an eye on inventory trends, OPEC+ signals, and refining margins for clues on near-term direction. Financials: Funding costs, loan growth, fee income, and credit provisions are the key watchpoints. Capital return plans and expense discipline remain catalysts. Consumer and discretionary: Margin resilience versus promotional activity is in focus. Travel, leisure, and luxury are sensitive to high-end demand and FX. What could move markets next Earnings guidance: Forward-looking commentary on demand, pricing, and margin structure may matter more than backward-looking beats/misses. Rate expectations: Any change in the timing or pace of anticipated policy adjustments can ripple through duration-sensitive equities and credit. Geopolitics and commodities: Headline risk around supply routes and regional tensions can quickly alter energy and freight pricing. Market internals: Watch breadth, new highs/lows, and factor dispersion to gauge the durability of the current advance. Risk radar Concentration risk in mega-cap leaders despite improving breadth Sensitivity to input costs and wage dynamics as pricing power normalizes Liquidity pockets in credit and private markets amid evolving rate paths Event risk around data releases and policy communication House view (tactical) Constructive but selective on risk assets near term, favoring high-quality balance sheets and cash-flow visibility. Prefer exposure to structural growth themes in compute/AI and automation while balancing with cyclicals tied to steady global demand. Maintain diversification with an eye on duration risk and potential volatility spikes around key events. Important information This newsletter is a general market commentary prepared for informational purposes only. It is not investment advice or a recommendation to buy or sell any security, sector, or strategy. Market levels shown above were provided by the user and may be delayed. Always evaluate investments in light of your objectives, risk tolerance, and financial situation. 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 15 – Daily Market Update January 15, 2026 15 January 26 – Daily Market Updates Markets Daily —… Read More january 14 –

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january 14 – Daily Market Update

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14 January 26 – Daily Market Updates Market snapshot (as of early US morning) S&P 500 futures: 6972.5 (-0.42%) Stoxx Europe 600: 610.96 (+0.09%) Nikkei 225: 54341.2 (+1.48%) China CSI 300: 4741.9 (-0.40%) Bitcoin: 94935.56 (+0.92%) Global overview US: Equity futures edge lower as investors weigh a firmer labor backdrop against shifting interest-rate expectations. Options and rates pricing continue to lean toward a prolonged Fed pause, with markets trimming the odds of near-term cuts after resilient employment data. Europe: Regional benchmarks are modestly higher, led by defensives and select growth names. Focus remains on earnings season and sovereign funding conditions as governments ramp up issuance. Asia: Japan outperformed with the Nikkei setting fresh records amid optimism around policy support and corporate profitability. Mainland Chinese shares eased following steps to curb leverage in stock trading, tempering a powerful recent rally. Commodities Precious and industrial metals extended an early-year surge, with several benchmarks notching new highs. Tailwinds include: Expectations that global financial conditions will remain supportive even if the Fed stays patient. A bid for portfolio diversifiers amid geopolitical unease and concerns over sovereign debt loads. Improved sentiment toward manufacturing demand, including investment tied to data centers, electrification and automation. Ongoing supply frictions at mines and smelters that keep inventories tight. While momentum is strong, positioning has become crowded, leaving the complex sensitive to shifts in the dollar, policy signals, or evidence of demand cooling. Rates and currencies US rate markets reflect a higher-for-longer narrative relative to earlier assumptions, with some participants positioning for no additional policy easing this year. The debate now centers on how long the Fed can hold policy steady while inflation trends lower only gradually. The US dollar is broadly steady, limiting commodity tailwinds but not reversing them. European yields remain range-bound as investors monitor issuance and fiscal trajectories. Corporate and sector highlights Select megacap technology, semiconductor, and AI-adjacent infrastructure names remain in focus as capital expenditure plans for computing and power build-outs continue to scale. Auto and EV shares are mixed on shifting expectations for new model launches and profitability timelines. Consumer and luxury names are steady to firmer in Europe on optimism around wearable tech and premium accessories. Large European defense suppliers continue to explore primary listings and capital-raising options amid elevated demand visibility. In the US, major banks are set to report, offering a read on net interest income, credit normalization, deposit trends, and capital return plans. Policy and macro themes The central-bank outlook has become more nuanced: resilient jobs data reduce urgency for additional easing, but inflation progress remains key. Market-implied paths now cluster around a longer pause scenario with a narrower distribution of potential cuts. Policy headlines tied to elections and regulatory priorities are adding idiosyncratic risk, particularly for financials, defense, and consumer credit. Expect periodic volatility as proposals surface, even without immediate legislative traction. In Asia, selective regulatory tightening in equity financing aims to stabilize recent rapid gains, while pro-growth signals in Japan continue to underpin risk appetite. Digital assets Bitcoin gained modestly, extending a steady start to the week. Flows remain driven by broader risk sentiment and positioning rather than a single catalyst. What we’re watching Bank earnings for guidance on credit quality, charge-offs, and capital deployment. Corporate updates from AI, cloud, and power-equipment ecosystems for evidence of sustained capex. Any shifts in Fed communications or data that alter the implied rate path. Developments in Asian equity-market regulation and their impact on trading leverage and turnover. Primary issuance and IPO pipelines in Europe, notably in industrials and defense. Thoughts for investors Broader cross-asset leadership is constructive, but crowded trades in metals and AI-linked thematics increase the premium on risk management. With policy risk rising into an election-heavy year, sector diversification and attention to headline sensitivity are prudent. In rates, the distribution of outcomes has tightened around “steady for longer,” raising the importance of carry, curve positioning, and relative value rather than big directional bets. Disclosure This material is a general market commentary for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security, asset class, or strategy. Market levels are indicative and subject to change. 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 13 – Daily Market Update January 14, 2026 14 January 26 – Daily Market Updates Market snapshot (as… Read More january 13 – Daily Market Update January 13, 2026 13 January 26 – Daily Market Updates Markets Daily—Broad Market… Read More Jan 12 – Daily Market Update January 12, 2026 12 Jan 26 – Daily Market Updates Markets Daily Your… Read More Jan 09 – Daily Market Update January 9, 2026 09 Jan 26 – Daily Market Updates Market at a… Read More Jan 08 – Daily Market Update January 8, 2026 08 Jan 26 – Daily

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january 13 – Daily Market Update

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13 January 26 – Daily Market Updates Markets Daily—Broad Market Update Market at a glance (as of 06:07 am ET; levels and changes are indicative) Nikkei 225: 53549.16 (+3.10%) S&P 500 Futures: 7005 (-0.16%) Stoxx Europe 600: 609.75 (-0.20%) Bloomberg Dollar Spot Index: 1210.5 (+0.08%) Bitcoin: 92011.56 (+1.14%) Global market wrap Asia: Japanese equities surged to fresh highs, led by cyclical and export-oriented names as investors priced in prospects for pro-growth policy and a supportive domestic backdrop. Broader Asian benchmarks were mixed, with pockets of strength in autos, semiconductors, and industrial technology. Europe: Major European indices are modestly softer in early trade after a strong multi-month run. Momentum indicators signal stretched conditions for some benchmarks, prompting talk of a near-term consolidation even as earnings expectations remain constructive. US: Equity futures are edging lower ahead of a key US inflation reading. Rate-sensitive sectors are in focus as markets assess the timing and extent of policy easing later this year. The broader tone remains constructive but data-dependent. Macro and policy Inflation watch: A closely watched US price report due today will help confirm whether disinflation is progressing smoothly or encountering a temporary bump. A firmer print could nudge yields higher and test risk appetite; a softer outcome would likely support duration and rate-sensitive equities. Central banks: Recent commentary from major central bank officials points to a preference for staying patient, keeping policy restrictive long enough to ensure inflation returns to target. Markets continue to balance that stance against an improving growth pulse. Policy and geopolitics: Headlines around trade, elections, and global security continue to inject episodic volatility into FX, rates, and energy. Investors remain alert to any policy shifts that could affect supply chains, tariffs, or the cost of capital. Earnings season: the next catalyst US financials open the season: Large banks kick off results with attention on investment banking pipelines, trading revenue normalization, net interest income trends, credit quality, and capital return frameworks. Forward guidance for 2026 will likely carry more weight than backward-looking beats or misses. Rotation vs. leadership: The recent tilt toward cyclicals, small caps, and value is being tested by earnings. While economically sensitive groups may benefit from firmer growth, mega-cap technology remains a major driver of index-level profit growth. For the rotation to endure, management teams across industrials, consumer, and financials will need to deliver confident outlooks and margin discipline. Rates, FX, and commodities Bonds: Treasury yields are steady to slightly higher into the data print, with the curve sensitive to any surprise in core inflation. European sovereigns are consolidating after a strong rally, and Japanese yields remain influenced by domestic policy expectations. Currencies: The US dollar is fractionally stronger on cautious pre-data positioning. The yen is softer on policy and political speculation, while the euro trades narrowly as markets await fresh macro signals. Energy and metals: Crude is rangebound as supply-risk headlines are weighed against demand and inventory dynamics. Industrial metals are steady, supported by signs of improving global manufacturing activity. Digital assets: Crypto benchmarks are firmer, with buyers stepping in on dips amid ongoing institutional interest and liquidity improvements. Sectors and notable themes Semiconductors: Positive broker commentary and capacity outlooks are supporting select chipmakers, particularly those tied to foundry, AI, and high-performance compute end markets. Health care/biotech: Regulatory headlines are creating dispersion, with approval timelines and data readouts driving stock-specific moves. Software and services: Contract wins and platform adoptions continue to differentiate among providers as enterprises optimize tech spending. Renewables and utilities: Policy and legal clarity are incremental tailwinds for selected projects, while execution and financing conditions remain key watch items. Autos and industrial tech: Investor enthusiasm around automation, robotics, and next-gen manufacturing continues to buoy select names. The day ahead Data: A key US inflation report, followed by labor and housing indicators later in the week. Abroad, focus remains on European confidence measures and Asia’s activity data. Earnings: Large US banks today, with more financials, consumer staples, and industrials through the week. Guidance on demand elasticity, pricing power, and cost control will be closely parsed. Events: Ongoing central bank appearances and policy remarks may influence rate expectations and cross-asset volatility. What we’re watching Can cyclicals extend their relative outperformance if inflation runs a bit hotter, or does that re-tighten financial conditions and favor defensives? Do banks point to a broadening M&A pipeline and a healthier primary market, supporting a more durable recovery in fees? Will management teams emphasize inventory normalization and productivity gains that sustain margins even if pricing power fades? Risk radar Policy shifts in trade and tariffs that affect global supply chains and input costs Inflation persistence that delays or reduces the scale of policy easing Geopolitical tensions that sway energy, shipping, and FX markets Liquidity pockets and positioning extremes after a strong year-end rally Portfolio considerations (general, not advice) Maintain diversification across styles and market caps given crosscurrents between growth leadership and cyclical catch-up. Consider the balance between duration exposure and inflation hedges around key data. Emphasize quality balance sheets and cash flow resilience as earnings season tests narratives. Disclosure This communication is for information purposes only and does not constitute investment advice or a recommendation to buy or sell any security or strategy. Markets are volatile and subject to change. Please consider your objectives, risk tolerance, and consult a qualified advisor before making investment decisions. Data and pricing are indicative and may differ from real-time quotes. 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

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Jan 12 – Daily Market Update

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12 Jan 26 – Daily Market Updates Markets Daily Your broad market briefing for the trading day Market at a glance Equities: US index futures softer; European benchmarks slightly lower after an uneven open; Asia mixed with Japan closed for a holiday. Rates: Long-dated US Treasury yields edging higher; global curves exhibiting a mild steepening bias. FX: The US dollar pulls back against major peers as investors reassess policy and growth trajectories. Commodities: Gold and silver extend gains on safe-haven demand; oil trades in a tight range amid crosscurrents in supply and demand. What’s moving markets Policy uncertainty and central bank signaling are back in focus. Markets are weighing the implications of potential shifts in the path of interest rates and the broader debate around monetary policy independence, keeping volatility elevated in rates, FX, and precious metals. Positioning and concentration risk remain key themes in equities. With leadership narrowing at times over recent months, investors are paying closer attention to earnings breadth, guidance quality, and cash flow durability rather than headline growth alone. Safe-haven flows are noticeable. A softer dollar alongside strength in bullion suggests some preference for diversification, particularly as investors hedge against inflation and policy surprises. Credit and consumer finance sentiment is cautious. Headlines and regulatory discussions around consumer lending and pricing are creating short-term pressure across select financials, while the broader credit market remains orderly. Equities US: Futures point to a weaker start as investors brace for a dense macro and earnings calendar. Dispersion within large-cap tech persists; stock selection remains critical as spending on new technologies meets more rigorous profitability scrutiny. Europe: Regional indices are modestly lower, with defensives and commodity-linked names outperforming cyclical pockets. M&A interest and corporate restructuring remain supportive for select sectors. Asia: Performance was mixed in a thin session. Mainland China and parts of North Asia are digesting fresh trade and price data later this week; liquidity conditions and policy communication remain near-term catalysts. Fixed income Treasuries: The curve is tilting steeper as markets weigh near-term easing expectations against longer-run term premium and fiscal dynamics. Duration has been choppy; many are favoring barbell or laddered approaches to manage reinvestment and volatility risk. Global rates: Core European yields are little changed to slightly higher; UK gilts underperform on supply and wage/inflation sensitivity. In credit, primary issuance remains active with mostly stable spreads, though lower-quality tiers could see more differentiation into earnings. Currencies The dollar index softens as rate differentials narrow at the margin. Pro-cyclical pairs are mixed; haven FX is steady. Investors continue to explore diversification across G10 and select EM currencies, balancing carry with liquidity and policy credibility. Commodities Precious metals: Gold and silver advance on a combination of real-yield moves, dollar softness, and hedging demand. Positioning is elevated; pullbacks may be tactical in nature given ongoing macro uncertainty. Energy: Crude trades sideways as supply risks are balanced by uneven demand indicators. Time spreads remain range-bound; refinery margins and inventory data later in the week are in focus. Industrials: Base metals are mixed, with growth-sensitive contracts awaiting clearer signals from global manufacturing and construction data. The week ahead: what to watch US: Inflation (CPI/PPI), retail sales, housing activity, and the Fed’s Beige Book. A full slate of public remarks from policymakers may shed light on the reaction function and outlook for rates. Big banks and bellwethers kick off a heavy earnings stretch; investors will watch net interest income trends, credit provisioning, trading revenues, and forward guidance. Europe/UK: Industrial production, trade balances, and central bank commentary. Bank earnings and corporate updates will help gauge demand, cost pressures, and pricing power into the first quarter. Asia: China trade data and regional labor/price prints; a key policy rate decision in North Asia. Semiconductor and technology supply-chain updates remain a driver for sentiment. Canada: Housing indicators and existing home sales; Bank commentary on growth and inflation mix. Strategy snapshots Equities: Expect higher dispersion. Emphasize quality balance sheets, consistent free cash flow, and pricing power. Within tech, differentiate between long-duration R&D stories and firms showing near-term monetization. Consider global diversification as non-US markets screen more attractively on relative valuation and earnings revision trends. Rates: Curve risk is back. Investors concerned about steepening may look at intermediate tenors and add hedges where appropriate. For income, maintain flexibility to add duration on weakness; consider credit selection over beta in tighter-spread areas. FX: With the dollar softer, selectively add to non-USD exposures where policy credibility is firm and growth is stable. Maintain liquidity and avoid crowded carry where volatility could force quick reversals. Commodities: For hedgers, staggered entries in precious metals may help manage momentum-driven swings. In energy, focus on balance sheets of producers with disciplined capex and robust cash returns. Risk management checklist Track real yields and breakevens for clues on inflation psychology. Watch credit conditions and bank earnings for early reads on the consumer and corporate funding costs. Use scenario analysis around key data releases; adjust stops and position sizes to account for event risk. Maintain diversification across regions, styles, and factors to mitigate concentration risk. Housekeeping and disclosures This material is a general market commentary prepared for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security or strategy. Markets are volatile; past performance is not indicative of future results. Consider your objectives, risk tolerance, and consult a qualified advisor 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

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Jan 09 – Daily Market Update

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09 Jan 26 – Daily Market Updates Market at a glance (as of ~6:00 a.m. ET) US equity futures: slightly higher (about +0.1%) as traders position for key data Europe: broader benchmarks firmer (roughly +0.4% to +0.5%) Asia: Japan outperformed (up around +1.6%) with tech and exporters in the lead US dollar: modestly stronger versus major peers (about +0.2%) US 10-year Treasury yield: near 4.19%, up a couple of basis points What’s moving markets All eyes on the US labor report: Today’s payrolls, unemployment rate, and wage growth will help shape expectations for the next steps in monetary policy. A steady hiring pace with contained wage pressures would support a “hold and assess” stance from the Fed, while any upside surprise in wages or core employment could nudge yields higher and firm the dollar. Trade policy watch: A potential legal decision related to tariffs is on investors’ radar. Any shift that lowers import costs could buoy risk appetite, particularly for import-reliant industries, while also complicating the rates outlook if the growth impulse and fiscal math are perceived to worsen. Rotation under the surface: Early-year flows show renewed interest in equities, with investors balancing quality growth exposures against more cyclical, trade-sensitive areas. Defensive pockets (health care, staples) continue to draw interest as a ballast against policy and macro uncertainty. Equities United States: Futures are little changed to slightly positive ahead of the data. A soft-landing narrative remains intact but fragile—labor and wages will be the tie-breaker. Within sectors, trade-sensitive consumer names and capital goods could react most to any tariff-related headlines, while rate-sensitive groups (housing, utilities) will take their cue from the move in yields. Europe: Regional indices are firmer, supported by a blend of defensives and economically sensitive names. A stable dollar and incremental improvement in external demand hopes are helping exporters. Financials remain leveraged to the path of long-end yields and curve shape. Asia: Japan led gains as chip-adjacent names and exporters extended momentum amid a firmer risk tone. Elsewhere in the region, sentiment remains selective: China-linked assets are weighed by ongoing property-sector restructuring efforts, while broader Asia benefits from steady global tech demand. Fixed income and FX Rates: Treasuries are marking time into the data with the 10-year yield hovering around 4.18%–4.20%. A hotter wage print or strong headline jobs number could push yields higher and steepen the curve; a downside surprise may extend the recent range trade and take some pressure off real rates. Dollar: The greenback is slightly firmer, reflecting cautious pre-data positioning. A benign payrolls outcome could cap further dollar gains, while any upside wage surprise would likely support the currency versus low-yielders. Commodities Energy: Crude is steady within recent ranges as supply headlines and risk sentiment offset one another. Demand signals from global PMI data and US inventory trends remain the key swing factors. Metals: Industrial metals are underpinned by consolidation talk in the mining space and hopes for eventual stabilization in construction demand, tempered by ongoing balance-sheet repair in parts of China’s property sector. Gold is little changed, with moves in real yields and the dollar in the driver’s seat. Themes to watch Tariffs and margins: Any reduction or uncertainty around import levies could influence input costs and pricing power across retail, apparel, home goods, machinery, and select technology hardware. Market reaction may be uneven, with beneficiaries on the cost side but potential push-pull on rates. Housing and rates: Policy efforts aimed at supporting mortgage markets can be a near-term tailwind for housing activity and related equities, but the durability of any boost will depend on the path of long-term yields. Electric vehicles and capital discipline: Slower EV adoption in select markets is prompting reassessments of production schedules and investment timelines across the auto-battery supply chain. China property stabilization: Restructuring steps remain in focus. The pace and scope of policy support will be key for credit sentiment, commodities demand, and regional risk assets. Scenario map for today’s US jobs data Stronger jobs and wages: Equities mixed (cyclicals up, rate-sensitives down), yields up, dollar firmer. In-line report with contained wages: Risk assets supported, yields range-bound, dollar stable to softer. Weaker jobs or softer wages: Duration bid (yields lower), dollar eases, equities lean positive for long-duration growth but may see some cyclical underperformance. The day ahead United States: Nonfarm payrolls, unemployment rate, average hourly earnings. Also watching any developments on trade policy/legal rulings and Fed-speak for rate-path hints. Corporate: M&A chatter in natural resources remains a swing factor for global miners; ongoing updates from autos/EV and housing-related firms may steer sector dispersion. Risk considerations Policy path ambiguity (monetary, fiscal, and trade) Geopolitical and supply-chain frictions affecting energy and freight Earnings revision risk if growth cools faster than expected Liquidity conditions as issuance and buybacks restart into earnings season Risk considerations Policy path ambiguity (monetary, fiscal, and trade) Geopolitical and supply-chain frictions affecting energy and freight Earnings revision risk if growth cools faster than expected Liquidity conditions as issuance and buybacks restart into earnings season Markets are marking time into the labor report and potential policy headlines. A balanced stance—maintaining quality exposure while keeping an eye on rate sensitivity and trade-linked cyclicals—remains prudent until the data reset the macro narrative. This commentary is for information only and does not constitute investment advice or a recommendation to buy or sell any security. Market levels are approximate and 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

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Jan 02 – Daily Market Update

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Jan 02 – Daily Market Updates Markets Daily — Broad Market Update Global risk appetite is firm to start the year, with technology leadership back in focus and commodities diverging. Below is a concise look at what’s moving markets and what to watch next. Market snapshot (as of 06:25 am ET) S&P 500 futures: 6936.2   Nasdaq 100 futures: 25736.25 US 10-year Treasury yield: 4.155% (-1 bp) Broad dollar index: +0.10% WTI crude (front-month): 57.40 What’s driving the tone Tech-led risk-on: Enthusiasm around artificial intelligence and semiconductor demand is lifting global equities. US futures are higher, and European benchmarks are testing new highs, while Asia’s session benefited from upbeat headlines tied to chips and AI infrastructure. Metals bid, oil softer: Precious metals are extending last year’s strong run, while industrial metals are firmer on hopes for improving manufacturing demand. Crude is weaker as ample supply and cautious demand expectations outweigh headline risks. Yields edge down: US Treasuries are slightly firmer in early trading, reflecting cooler inflation trends and expectations that major central banks will have room to ease later this year if growth moderates. Equities US: Mega-cap tech and semiconductor names are pacing gains in premarket trading, with data center suppliers and AI-adjacent hardware/software names outperforming. Cyclical sectors are mixed as investors balance the growth impulse from tech with still-tight valuations across parts of the market. Europe: Broad strength across large caps, with chip equipment, industrials, and select financials firm. A softer oil tape is a mild headwind for energy shares. Asia: High-beta tech and internet groups led advances. Select listings connected to AI chips and cloud infrastructure drew strong interest, underscoring ongoing capital expenditure plans tied to compute and networking. Rates and credit US Treasuries: The 10-year yield is hovering near 4.16%, down modestly on the session, with the curve little changed. Markets continue to price a gradual path toward easier policy later in 2026, contingent on labor and inflation data. Credit: Primary issuance is expected to reopen as the calendar turns, with spreads remaining tight versus long-run averages—a sign of healthy risk appetite but a reminder that compensation for credit risk is slim if growth disappoints. FX The dollar is marginally stronger versus a broad basket as rate differentials remain supportive. High-beta currencies are stable to firmer on improved equity sentiment, while commodity FX is capped by softer crude. Commodities Energy: Crude is under pressure amid signs of comfortable supply and uneven demand growth. Refining margins are mixed; product cracks vary by region as winter demand patterns take hold. Metals: Gold and silver extend gains, supported by lower real yields and ongoing diversification flows. Industrial metals such as copper and aluminum are firmer on hopes of steady capex in electrification, grid, and data center build-outs. Sectors and themes to watch AI and semiconductors: Momentum remains concentrated in compute, memory, and power/cooling infrastructure tied to data centers. Watch for updates on capacity expansions, supply constraints, and pricing power along the chip supply chain. EVs and autos: Delivery and production updates are in focus. Investors are watching how US and Chinese manufacturers navigate pricing, inventory, and model cycles, as well as how software/autonomy roadmaps influence valuation. Energy: Policy headlines and OPEC+ signals remain near-term catalysts, but physical balances and inventory trajectories are driving price action day to day. Macro and policy backdrop Inflation is trending lower from prior peaks, helping central banks pivot toward a more flexible stance. That said, policymakers remain data dependent, and the timing/scale of any rate cuts will likely hinge on labor market resilience. Fiscal support varies by region, with targeted measures aimed at growth and industrial policy. Trade frictions and regulatory shifts remain watchpoints for cross-border flows and supply chains. The day and week ahead Data: Manufacturing surveys, early reads on global PMIs, and high-frequency labor indicators will shape rate expectations. Later in the week, look for minutes and speeches from key central banks for guidance on the pace of any 2026 policy recalibration. Corporate: A steady stream of trading updates and guidance resets is expected as companies exit blackout windows. Watch capex commentary tied to AI infrastructure, grid upgrades, and logistics. Positioning thoughts Equities: Leadership remains narrow; consider balancing AI beneficiaries with quality cyclicals and defensives to mitigate concentration risk. Fixed income: With yields off the highs and inflation easing, selectively extending duration may improve portfolio ballast, while staying discerning in lower-quality credit where spreads are thin. Commodities and FX: Expect episodic volatility around policy and geopolitics; risk management and diversification remain key. This material is for information only and does not constitute investment advice or a solicitation to buy or sell any financial instrument. Markets are volatile and subject to change. 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. Jan 02 – Daily Market Update January 2, 2026 Jan 02 –

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Weekly Global Market News – Dec 30

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Weekly Global Market News – Dec 30 Weekly Markets Brief – Year-End Edition Overview Markets wrapped up the holiday-shortened week with a cautious tone as investors balanced resilient growth signals against the prospect of slower, but still positive, disinflation. Liquidity remained thin into year-end, amplifying intraday swings across equities, bonds, and commodities. While headline indices hovered near recent ranges, leadership continued to rotate beneath the surface—benefiting quality balance sheets and companies with clear cash flow visibility, while more speculative pockets saw mixed participation. Quick take Macro: Disinflation continues to trend gradually lower in major economies, while labor markets show signs of cooling without a sharp deterioration. Policy: Central banks remain data-dependent; markets are still calibrating the timing and pace of eventual rate cuts rather than debating further hikes. Equities: Breadth is improving but uneven; quality growth, selected cyclicals, and capital-light business models retain a premium. Fixed income: Front-end yields are sensitive to each macro print; curve shape remains a focal point for duration decisions. Credit: Investment-grade spreads remain resilient; high yield and loans are more idiosyncratic as refinancing calendars pick up. Commodities: Energy trades the push-pull of supply discipline versus growth expectations; precious metals track real yields. Currencies: Dollar direction is tied to relative rate expectations; yen remains sensitive to any normalization cues from the BoJ. Risks: Policy missteps, sticky services inflation, and geopolitical headlines are the key swing factors as we turn the calendar. Equities Global stocks were range-bound into the holiday period, with thin volumes masking notable factor rotation. Investors favored: Quality earnings and free cash flow over high beta. Businesses with pricing power as input costs normalize but wage trends remain steady. Select cyclicals tied to infrastructure, AI-related capex, and industrial automation. Healthcare and staples for defensiveness where valuations remain reasonable. Technology leadership broadened beyond megacaps in places, with semiconductors and software tied to AI infrastructure continuing to draw capital. That said, valuation discipline mattered: companies pairing growth with improving margins saw the most durable follow-through. Small and mid-caps showed intermittent strength as rate expectations eased, but dispersion within those cohorts stayed elevated. Fixed income Rate markets spent the week consolidating prior moves. The front end remains anchored to incoming inflation and employment data, while the long end is responding to growth expectations and term premia. Duration: With policy rates near a peak in many jurisdictions, selectively extending duration remains a live debate, particularly for investors underweight high-quality core bonds. Credit: Investment-grade corporate bonds continue to benefit from balance sheet conservatism and terming-out of debt. High yield is more bifurcated; credits with near-term maturities and weaker cash generation face a tougher refinancing backdrop even if all-in yields remain attractive. Municipals: Seasonals can be supportive into year-end, though individual credit fundamentals and tax positioning remain key. Commodities Crude oil: Prices are oscillating as production discipline and inventory draws square off against moderate demand growth and an uncertain global growth outlook. Geopolitical risk premia can spike quickly in thin markets. Gold: Supported by a softer trajectory in real yields and ongoing central bank demand; pullbacks have found buyers on dips. Industrial metals: Copper and related metals are tracking China’s policy impulses and global manufacturing momentum. Any pickup in capex and grid investment is a medium-term tailwind. Currencies US dollar: The path is driven by relative rate differentials and growth surprises. A measured glide path lower in US inflation relative to peers typically weighs on the dollar, but any growth outperformance can offset. Euro: Sensitive to Eurozone inflation prints and growth downgrades; the policy narrative is balanced between caution and flexibility. Yen: Markets remain alert to signs of policy normalization; small shifts in guidance can result in outsized FX moves. EM FX: Country-specific fundamentals dominate. External balances, commodity exposure, and credible policy frameworks are differentiators. Corporate earnings The upcoming reporting season will refocus attention on: Margins: Relief from input costs versus sticky wage bills and opex normalization. Guidance: Demand visibility, backlog quality, and pricing power in 2025. Capex: Ongoing spend on AI infrastructure, supply-chain resiliency, and energy transition projects. Buybacks and dividends: Capital return remains a support, but management teams are increasingly selective. Policy and macro Inflation: Goods disinflation is largely advanced; the focus is on services categories tied to wages and shelter. The trajectory still points lower, but month-to-month noise remains. Growth: Soft landing remains the base case for many, with risks skewed by credit conditions and consumer excess savings that have normalized. Central banks: Messaging emphasizes flexibility. Markets are calibrating the timing of any policy easing, likely gradual and dependent on data. The week ahead: what matters Inflation gauges: National CPI/PPI prints and Eurozone flash estimates will set the tone for rate expectations. PMIs and ISM: Manufacturing and services surveys will help validate whether activity is stabilizing. Labor data: Payrolls, wage growth, and jobless claims will inform the “slow-cooling” narrative. Central bank minutes/speakers: Any hints on reaction functions, balance sheet plans, or tolerance for upside/downside surprises. China: Official and Caixin PMIs plus policy headlines around property and credit conditions. Corporate: Early preannouncements, buyback authorizations, and capital expenditure updates. Three things to watch Breadth and leadership: Can participation broaden beyond a handful of mega-caps on improving earnings visibility and easing financial conditions? Services inflation: Progress here is the swing factor for the timing of rate cuts in major economies. Credit conditions: Primary markets and refinancing activity will be a real-time stress test for lower-rated borrowers. Strategy corner (education only) Equities: Balance quality growth with selective cyclicals exposed to capex and infrastructure upgrades. Consider diversifying factor exposure to reduce reliance on a narrow leadership cohort. Fixed income: Reassess core duration after the past year’s moves; high-quality bonds have regained their hedging role. In credit, emphasize upgraded balance sheets and manageable maturity walls. Multi-asset: With cross-asset correlations falling from peak levels, a more balanced mix across equities, high-quality bonds, and select alternatives can improve risk-adjusted outcomes. Risk radar Policy error: Cutting too early or staying restrictive too long. Sticky services prices: Particularly shelter and labor-intensive categories. Geopolitics: Energy supply disruptions,

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Dec 29 – Daily Market Update

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Dec 29 – Daily Market Updates Markets Daily — Broad Market Update As year-end approaches in a holiday-shortened week, global markets are trading with a risk-trimming tone. Liquidity is thinner than usual, rebalancing flows are active, and headline sensitivity remains elevated across rates, commodities, and mega-cap technology. Market snapshot (as of 05:35 am ET; data provider times may vary) S&P 500 Futures: 6964 Stoxx Europe 600: 588.6 Nikkei 225: 50526.92 Spot Silver: 75.2 Bitcoin: 87888.95 Note: Market data may be delayed. Levels are for illustration and not tradeable quotes. What’s driving the tone Equities: US equity futures are modestly softer, led by a pullback in large-cap growth after an extended multi-quarter run. Europe is little changed, and Japan eased as investors continue to assess the path of domestic policy normalization and currency dynamics. Commodities: Precious metals are volatile with silver giving back part of recent outsized gains as profit-taking and position squaring set in. Industrial metals remain broadly supported by tightness narratives and infrastructure demand expectations. Digital assets: Major tokens are firmer after a choppy December, with interest supported by ongoing institutional product development and year-end positioning. Policy backdrop: Investors are parsing central bank communications for early-2026 guidance. In the US, attention is on recent meeting minutes and incoming labor and manufacturing signals. In Asia, policy normalization debates continue to shape rate and FX expectations. Geopolitics: Ongoing developments in key regions continue to influence defense, energy, and safe-haven flows. Markets are quick to reprice sector exposures on new headlines. Asset class roundup US: Futures softer with tech-heavy segments underperforming pre-market; defensives mixed. Year-end rebalancing and tax considerations are adding noise to intraday moves. Europe: Benchmark indices are flat to slightly lower. Cyclicals are uneven; defense-related names and select resources are showing higher beta to headlines and commodity swings. Asia: Japan declined; broader Asia mixed. Currency-sensitive exporters and rate-sensitive domestic sectors are diverging as local bond yields and FX adjust. Rates and FX: Core yields are contained in subdued holiday trading; curve moves are modest. The dollar is broadly steady, with yen and euro traders focused on policy-path differentials and growth surprises. Commodities: Silver is retracing after a rapid ascent; copper remains resilient. Energy benchmarks are rangebound as traders weigh inventory trends against growth and geopolitical risk. Crypto: Price action is constructive but volatile into year-end; flows remain headline dependent and liquidity can be patchy around holidays. Today’s focus and near-term watchlist US: Pending home sales, regional manufacturing signals, and weekly energy inventories will help shape the near-term growth and inflation narrative. FOMC minutes later in the week are a key read for policy tone and balance-sheet nuances. Europe: Preliminary inflation and growth indicators continue to inform the pace and timing of 2026 policy adjustments. Asia: Manufacturing and services PMIs, along with select CPI prints, guide the discussion on domestic rate paths and currency stability. Market mechanics: Expect thinner liquidity, wider bid-ask spreads, and potentially outsized moves around the European and US session overlaps. Quarter- and year-end portfolio rebalancing can create transient price dislocations. The week ahead (holiday-adjusted) Early week: Housing and manufacturing readings in the US; select labor and inflation updates in Latin America and Europe. Mid-week: Major PMIs in Asia; US policy minutes; weekly jobless claims; several markets observing early closes. Late week: Regional manufacturing and retail data in Europe and Asia; most markets shut for New Year’s Day. Themes to monitor into 2026 Earnings durability vs. elevated valuations in mega-cap growth. The path of disinflation and real rates, and implications for duration and equity multiples. Supply-demand balances in key commodities after sharp fourth-quarter moves. Currency realignments as policy paths diverge. Liquidity conditions and the impact of tighter financial conditions on lower-quality credit. Risk management considerations Holiday trading can amplify volatility; use limit orders and be mindful of execution in thin markets. Diversification and position sizing are critical amid cross-asset correlations that can shift quickly. For longer-term investors, focus on fundamentals and cash-flow resilience rather than short-term price swings. Housekeeping and disclaimer This publication is a general market update intended for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any financial instrument. Market levels are indicative and subject to change. Consider your objectives, risk tolerance, and consult a qualified advisor 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. Dec 29 – Daily Market Update December 30, 2025 Dec 29 – Daily Market Updates Markets Daily — Broad… Read More Dec 24 – Daily Market Updates December 24, 2025 Dec 24 – Daily Market Updates Markets Daily — Broad… Read More Dec 23 – Daily Market Updates December 23, 2025 Dec 23 – Daily Market Updates Markets Daily: Broad Market… Read More Dec 22 – Daily Market Updates December 22, 2025 Dec 22 – Daily Market Updates Markets Daily | Broad… Read More Dec 19 –

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Dec 24 – Daily Market Updates

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Dec 24 – Daily Market Updates Markets Daily — Broad Market Update Overview Global markets are treading lightly into the holiday period. Equity futures in the US are little changed after a strong year-to-date run, European benchmarks are marginally firmer in thin trading, and Asia was mixed with mainland China edging higher. Bond markets are calm as traders wind down risk and liquidity thins. The US dollar remains softer on the year, while precious metals are firm as investors balance geopolitics and the prospect of further policy easing in 2026. Several exchanges are operating on shortened schedules around Christmas. Equities US: Futures are flat to slightly lower as investors weigh year-end rebalancing, a lighter data calendar, and a strong seasonal backdrop. The broader index remains near record territory after multiple weeks of gains. Europe: Stocks are fractionally higher in holiday-thinned volumes. Defensive sectors and select financials are supported by stable yields; cyclical exposures are mixed. Asia: Mainland China stabilized with a modest uptick, while other regional markets delivered a mixed performance amid cautious risk-taking. Rates US Treasuries are steady with the curve little changed. With few catalysts before year-end, ranges may remain tight, though liquidity could amplify intraday swings. Core European yields are broadly stable; peripherals are tracking risk sentiment. Currencies The dollar index is lower year-to-date, reflecting a shift toward a gentler policy trajectory and improving risk appetite. High-beta and commodity-linked currencies have firmed on the margin, while safe-haven FX is subdued. Commodities Precious metals extended gains, supported by geopolitical unease, softer real yields, and continued diversification flows. Industrial metals are holding recent advances on improving supply-demand expectations into the new year. Crude prices are range-bound as supply dynamics and growth expectations offset each other into year-end. ETFs: A blockbuster year, with a note of caution US-listed ETFs are closing the year with standout net inflows, robust primary market activity, and elevated secondary trading. Product launches accelerated across both broad beta and thematic exposures. The backdrop—rising equities, easing-rate expectations, and active sector rotation—has been a tailwind for both equity and fixed income ETFs. Liquidity and tax efficiency continue to attract both retail and institutional users. Looking into next year, expect a more discerning environment: fee competition, product differentiation, and higher scrutiny on niche themes. If volatility picks up, flows may consolidate into core, low-cost exposures and high-quality bond sleeves. Corporate highlights (broad) Year-end dealmaking remains active with selective asset sales and bolt-on acquisitions across energy, healthcare, and infrastructure, underscoring ongoing portfolio optimization and balance-sheet discipline. Index changes and periodic reconstitutions are driving stock-specific flows. Buyback authorizations and insider purchases continue to offer signals on corporate confidence but effects are idiosyncratic. Geopolitics and regional themes Hopes for de-escalation in parts of Eastern Europe have supported regional assets, though positioning remains cautious given headline risk and uncertainty around the contours of any agreement. Developments in Latin America are contributing to commodity and FX volatility; policy continuity and fiscal signals will be closely watched in early 2026. Policy watch Debate around the appropriate inflation target framework has resurfaced in policy circles. While any formal change would be a multi-year process, markets are sensitive to signals on the tolerance band around inflation and the path for real rates. Into January, attention turns to the next set of inflation and labor data, and to central bank communications that could refine the pace and timing of potential rate cuts. What we’re watching next Liquidity and rebalancing effects through the final sessions of the year Early-January data on jobs, wages, and inflation expectations Q4 earnings season previews, with a focus on margins, capex discipline, and AI-related spend Credit market tone as new-issue windows reopen China’s policy signals and growth stabilization efforts Portfolio considerations (not investment advice) After a strong run for risk assets, consider balance across quality, duration, and liquidity. Core fixed income can provide ballast if growth slows more than expected. If volatility normalizes higher, systematic rebalancing and option-based hedges may help manage drawdowns. Within equities, earnings resilience and balance-sheet strength remain key differentiators; within credit, dispersion argues for careful issuer selection. Calendar (abridged) Holiday-shortened sessions in several major markets Light data slate into year-end; fuller macro calendar resumes in early January This publication is for information only and is not a recommendation or investment advice. Markets are volatile and subject to change. Please consider your objectives and risk tolerance and consult a licensed advisor 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. Dec 24 – Daily Market Updates December 24, 2025 Dec 24 – Daily Market Updates Markets Daily — Broad… Read More Dec 23 – Daily Market Updates December 23, 2025 Dec 23 – Daily Market Updates Markets Daily: Broad Market… Read More Dec 22 – Daily Market Updates December 22, 2025 Dec 22 – Daily Market Updates Markets Daily | Broad… Read More Dec 19 –

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