Markets are starting 2026 on an interesting note. Global equities are generally higher, with European stocks hitting record levels and defense, tech, and cyclical names all contributing to gains. Around the world, Asian markets like the Nikkei and Kospi are also climbing, with AI and chip related sectors in focus.
AI enthusiasm remains alive, but there’s also a growing narrative around AI‑driven inflation risk as massive spending on infrastructure could keep pressure on prices and force central banks to rethink rate paths.
Geopolitical headlines are adding to the backdrop too, markets aren’t panicking, but safe‑haven assets like gold and silver are up, and investors are balancing optimism with caution.
Given these mixed signals, broad equity strength but rising inflation fears and lingering geopolitics. It feels like markets are trying to find a clear narrative for this year.
Are we looking at sustained 2026 gains, or is this early strength masking lurking volatility once liquidity fully returns?
What are you watching most closely right now? Sector rotations, macro data, or geopolitical risk?