January 2026 Market update

Overview

January marked a continuation of the global equity rally, but with a notable rotation away from last year’s leaders. Small cap equities and commodity-linked assets outperformed while US mega-cap technology stocks paused after an extended run.

A weaker US Dollar was a defining feature of the month, contributing to asset class rotations.

Sterling strengthened 1.6% against the Dollar, reaching a seven-month high, and while this supported commodity prices and emerging markets, it diluted GBP-based returns from global equities, with the global benchmark modestly negative in Sterling terms.

Full update below…