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Global financial markets gained through mid-January to begin 2026, driven by expectations for the continuation of AI-related spending and strategic investment, alongside a strong outlook for global economic growth. These gains occurred despite rising geopolitical risk and ongoing uncertainty regarding the timing and magnitude of interest-rate cuts in 2026. Global equity markets posted broad gains, led by emerging markets and small-cap stocks, while large-cap equities and the Technology sector also advanced. Interest rates were little changed amid uncertainty surrounding U.S. Federal Reserve leadership. The U.S. dollar strengthened against most major currencies. Commodities delivered mixed performance, with gains led by a surge in Platinum and Silver. Oil prices advanced, while Natural Gas posted a steep decline.

Hedge funds posted gains through mid-January with the HFRX Global Hedge Fund Index gaining +1.44%.

• HFRX Macro Index gained +2.74%
  
• HFRX Equity Hedge Index gained +1.55%
• HFRX Event Driven Index gained +1.43%
• HFRX Relative Value Index gained +0.57%

Comments reference performance figures as of January 15th, 2026