Global markets are showing a mixed picture this Wednesday, January 14, as investors weigh fresh inflation data, escalating geopolitical tensions, and key corporate earnings. US stock futures are down after Wall Street pulled back from recent records, while Asian markets largely climbed, led by a surging Nikkei. Oil prices saw an early rally, climbing more than 2% on Tuesday due to Middle East unrest, but dipped slightly today as Venezuelan exports resumed. ### Global Market Performance Mixed US stock futures declined in early trading on Wednesday, extending losses from the previous day. The S&P 500 Futures fell slightly to 6,998.0 points, Nasdaq 100 Futures steadied at 25,899.0 points, and Dow Jones Futures dropped 0.1% to 49,374.0 points. This followed a retreat on Wall Street Tuesday, where the S&P 500 fell 0.2% to 6,963.74, the Dow Jones Industrial Average dropped 398.21 points to 49,191.99, and the Nasdaq composite sank 24.03 to 23,709.87.^[1][2][3][4] Banking shares led these losses, with JPMorgan falling 4.2% after its investment banking fees disappointed.^[3][4][5] Concerns over President Donald Trump's proposed 10% cap on credit card interest rates also weighed on the financial sector.^[5] In Asia, markets showed mixed performance but a generally positive trend on Wednesday. Japan's Nikkei 225 surged 1.6% to 54,413.92, hitting a new record high.^[1][6][7][8] This rally was fueled by speculation that Prime Minister Sanae Takaichi might call snap elections, potentially leading to further economic stimulus.^[6][8] Hong Kong's Hang Seng index gained nearly 0.8% to 27,055.14, and the Shanghai Composite jumped 1.2% to 4,187.14.^[1][9] However, gains in Chinese stocks were later curbed after Beijing adjusted a key margin financing policy.^[8] South Korea's Kospi edged down 0.1% to 4,687.32, while Australia's S&P/ASX 200 also slipped 0.1% to 8,798.80.^[1][9] European markets closed mostly flat on Tuesday. The Euro Stoxx 50 saw a marginal gain of 0.22%, the DAX was up 0.060%, and the FTSE 100 recorded a slight dip of 0.033%.^[9][10] For Indian markets, the GIFT Nifty traded lower by 0.10% at 25,752 in pre-market, suggesting a muted start for Dalal Street.^[11] Analysts suggest a levels-based trading strategy for day traders due to the non-directional market texture.^[11] ### Economic Data and Policy Shifts The latest US inflation data for December showed that consumer prices rose 2.7% overall compared to a year earlier.^[1][9] This figure was slightly higher than economists expected and remained above the Federal Reserve's target.^[1] However, monthly core inflation, which excludes volatile food and energy prices, increased by a softer 0.2%, falling below the anticipated 0.3%.^[12][13] This mixed inflation picture has solidified expectations that the Federal Reserve will likely keep interest rates on hold at its upcoming January meeting.^[12][5] However, the data also strengthened bets that the Fed will cut its main interest rate at least twice in 2026 to support the job market.^[1] Today, investors are keenly awaiting new US economic data. The Producer Price Index (PPI) for November and retail sales figures for the same month are scheduled for release.^{[2][14][15][5]} Economists project retail sales to increase by 3% year-on-year, a slowdown from the 3.5% recorded in October.^[2] Producer prices are expected to show a 2.7% year-on-year rise.^[2] Softer readings in these reports could further bolster expectations for Federal Reserve rate cuts in the first half of 2026.^[2] China's trade data for December came in better than forecasts, providing some positive cues for the region.^[8][16][17] However, Beijing's move to raise the minimum margin required for funding stock purchases on local exchanges led to a reversal of early gains in Chinese stocks.^[8] ### Commodities and Currencies in Focus Crude oil prices, which surged more than 2% on Tuesday due to escalating tensions in Iran, experienced a modest pullback on Wednesday.^[18][19] Brent crude dipped 15 cents to $65.32 a barrel, while benchmark US crude lost 18 cents to $60.97 a barrel.^[1][20] This pause in the rally came as Venezuelan oil exports resumed, easing some supply concerns.^[19] Despite this, political instability in Iran continues to fuel a "geopolitical premium" in oil prices, with analysts estimating potential disruptions could threaten up to 3.5 million barrels per day of supply.^[18][21] John Evans, an analyst at PVM Oil Associates, said the market is pricing in this "geopolitical premium," factoring in the potential removal of Iranian oil from the market.^[18] Barclays estimates that unrest in Iran has added $3–4 per barrel to the geopolitical premium in oil prices. ^[18]Gold prices traded with steady-to-firm trends across major Indian cities on Wednesday, supported by consistent buying interest. T^[22][23]wenty-four-carat gold was priced between ₹1.43 lakh and ₹1.44 lakh per 10 grams in key centers. Gold ^[22]remains a preferred investment option in India, especially during times of economic uncertainty. Nirma^[24]l Bang Commodity Research report stated, "Gold prices are expected to rise." Silve^[23]r prices also saw notable upward movement, rising by around 4.41% to 4.53% across tracked Indian cities. Globa^[22][23]lly, spot silver surged 3.7% to breach the $90 mark. Nirma^[6]l Bang Commodity Research also predicted, "Silver prices are expected to rise." The ^[23]US dollar index (DXY) was largely unchanged at 99.1790 on Wednesday, nearing its highest level since early December. The d^[12][25]ollar had inched up against the Japanese yen, with the yen weakening past 159 per dollar, its lowest level since July 2024. This ^[1][6][2]weaker yen has fueled yen carry trades into US risk assets. ### ^[2]Key Company News and Themes Beyond macroeconomic factors, several companies made headlines. JPMorgan's shares fell despite reporting stronger-than-expected profit, as its investment banking fees came in below guidance. Meanw^[1][3][4]hile, Delta Air Lines lost 2.4% after its revenue and 2026 profit forecast midpoint fell short of expectations. On a ^[1]positive note, Moderna jumped 17.1% after announcing it expects 2025 revenue to be above the midpoint of its previous forecast. In t^[1]he technology sector, Tata Consultancy Services (TCS) and AMD announced a strategic collaboration. They ^[26]plan to co-develop industry-specific AI and generative AI solutions, aiming to help enterprises scale AI adoption and modernize legacy environments. Fujit^[26]su also launched a demonstration experiment focused on green steel value flow, utilizing blockchain technology to accelerate decarbonization in the steel industry. In A^[27]ustralia, Monadelphous Group shares hit a new record high, climbing 3.3%. This came after the company secured a major long-term maintenance contract with Rio Tinto, valued at approximately $300 million over five years. In Qa^[28]tar, Mitsubishi Power was awarded a contract to supply hydrogen-ready M701JAC gas turbines for the Facility E Independent Water and Power Project. This ^[29]project aims to add 2.4 GW of power and 495,000 tons of desalinated water daily. Over^[29]all, Wednesday's trade setup is characterized by a cautious tone in Western markets following recent pullbacks and inflation concerns, contrasted with a robust rally in some Asian markets. Geopolitical tensions continue to influence commodity prices, while specific company developments and upcoming economic data will guide investor sentiment throughout the day.

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