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On Friday, trading on the US stock market ended with a decline. By the close of Friday, the Dow Jones (US30) Index fell by 0.36% (-0.50% for the week). The S&P 500 (US500) decreased by 0.43% (+0.23% for the week). The tech-heavy Nasdaq (US100) closed lower by 1.28% (-0.31% for the week). Market pressure was driven by rising Treasury yields and a strengthening dollar after President Donald Trump appointed Kevin Warsh as the successor to Fed Chair Jerome Powell. Investors viewed this move as a signal toward a more hawkish and cautious monetary easing trajectory, triggering a rise in long-term bond yields and profit-taking in rate-sensitive assets following a strong January rally.

The Canadian dollar (CAD) retreated to 1.355 per US dollar. The weakness was linked to softer domestic economic growth signals and a rebounding US dollar, which partially offset January’s gains. Data showed that Canada’s real GDP remained unchanged in November, while the manufacturing sector recorded its third contraction in four months, indicating instability in underlying economic dynamics despite limited contributions from the service sector. This reinforced expectations that the Bank of Canada (BoC) will maintain a cautious approach and refrain from tightening policy.

The Mexican peso (MXN) weakened to above 17.4 per US dollar, correcting after a strong monthly gain. Pressure on the currency intensified amid US dollar strengthening and a revision of interest rate expectations, which reduced the attractiveness of carry trade operations. The key trigger was the dollar’s recovery following Kevin Warsh’s appointment as the next Fed Chair. The market interpreted this as a signal for a more predictable and disciplined monetary policy, leading to higher US yields and increasing the opportunity cost of holding peso positions.

Equity markets in Europe mostly rose on Friday. The German DAX (DE40) climbed 0.94% (-1.41% for the week), the French CAC 40 (FR40) closed up 0.68% (-0.05% for the week), the Spanish IBEX 35 (ES35) rose by 1.66% (+1.79% for the week), and the British FTSE 100 (UK100) closed at positive 0.51% (+0.79% for the week). The indices were supported by fresh economic data and corporate reports. Preliminary figures showed the German economy grew by +0.3% quarter-on-quarter in Q4 2025, exceeding expectations after stagnation in Q3 and a -0.2% contraction in Q2. Germany’s inflation rate rose to 2.1% in January 2026 from a December low of 1.8%, slightly exceeding market expectations of 2.0%.

On Friday, silver prices (XAG) plummeted by more than 25%, dropping to $84 per ounce following aggressive profit-taking that triggered a broad pullback in precious metal prices. Geopolitical tensions remained high after President Trump signed an executive order on tariffs for goods from countries supplying oil to Cuba, increasing pressure on Mexico, and called for Iran to enter nuclear negotiations, while Tehran promised a swift response. On the monetary front, market attention focused on Kevin Warsh’s appointment as the new Fed Chair, ending months of speculation regarding future US policy.

The US natural gas prices (XNG) surged 7%, reaching $4.10 per MMBtu, driven by increased flows to LNG export plants, including the likely restart of a train at the Freeport LNG plant in Texas. Deliveries for LNG production grew for the fourth consecutive day, reaching 17.9 billion cubic feet per day (bcf/d) after recently falling to an annual low of 11.5 bcf/d due to winter storms. The price increase occurred despite expectations for milder weather and lower heating demand, as well as the recovery of production from previously frozen wells. Weather is expected to remain colder than normal until February 14, and futures showed a nearly 14% gain in January after a 23% drop the previous month.

Asian markets traded with mixed dynamics last week. The Japanese Nikkei 225 (JP225) rose by 0.56% for the trading week, the FTSE China A50 (CHA50) increased 0.49%, the Hong Kong Hang Seng (HK50) gained 2.02%, and the Australian ASX 200 (AU200) showed a positive 5-day result of 0.27%.

China’s official Manufacturing PMI fell to 49.3 points in January 2026, compared to 50.1 in December, missing market expectations of 50. The data indicate a loss of momentum at the start of the year: weak domestic and foreign demand, along with cautious business sentiment, continue to hinder recovery amid persistent structural economic issues.

Australian 10-year government bond yields rose toward 4.81%, remaining near a more than two-year high as markets increasingly priced in rate hikes ahead of the RBA meeting. The probability of a rate hike on February 3 is currently estimated at 75%, with market participants expecting another tightening by August. This was supported by a series of strong macro data points: December inflation was higher than expectations and remains far from the 2–3% target range, unemployment fell unexpectedly, job vacancies grew at the fastest pace since February 2022, and house price growth accelerated in January, highlighting economic resilience. Against this backdrop, analysts do not rule out that 10-year yields could briefly exceed 5% in the short term.

• S&P 500 (US500) 6,939.03 −29.98 (−0.43%)
• Dow Jones (US30) 48,892.47 −179.09 (−0.36%)
• DAX (DE40) 24,538.81 +229.35 (+0.94%)
• FTSE 100 (UK100) 10,223.54 +51.78 (+0.51%)
• USD Index 97.15 −0.86% (−0.90%)
   

News feed for: 2026.02.02

• Australia Manufacturing PMI (m/m) at 00:00 (GMT+2); – AUD (MED)
• Japan Manufacturing PMI (m/m) at 02:30 (GMT+2); – JPY (MED)
• China RatingDog Manufacturing PMI (m/m) at 03:45 (GMT+2); – CHA50, HK50 (MED)
• German Retail Sales (m/m) at 09:00 (GMT+2); – EUR (LOW)
• Switzerland Manufacturing PMI (m/m) at 10:30 (GMT+2); – CHF (MED)
• Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+2); – EUR (MED)
• UK Manufacturing PMI (m/m) at 11:00 (GMT+2); – GBP (MED)
• Canada Manufacturing PMI (m/m) at 16:30 (GMT+2); – CAD (MED)

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