The ISM Services PMI for the US steadied at 53.8 in January 2026, the same as a downwardly revised 53.8 in December and better than forecasts of 53.5. The reading pointed to another robust expansion in the services sector, with a faster increase seen for business activity/production (57.4 vs 55.2) while new orders (53.1 vs 56.5), employment (50.3 vs 51.7) and supplier deliveries (54.2 vs 51.8) slowed. Inventories (45.1 vs 54.2) and backlog of orders (44 vs 42.6) remained in contraction but price pressures increased (66.6 vs 65.1). "There was more respondent commentary in January on tariff impacts and uncertainty, potentially the result of annual contract renewals and geopolitical tensions. Gasoline and diesel fuel continued to be cited as commodities down in price. With the highest Business Activity and Supplier Deliveries index readings since October 2024, whether pricing increases will stick or expand needs to be closely watched”, according to Steve Miller, Chair of the ISM.

Gold pared earlier gains on Wednesday to trade just under the $5,000 mark, as investors assessed fresh US economic data and its implications for the Federal Reserve’s policy path, particularly after President Trump nominated Kevin Warsh as the next Fed chair. With key labor-market releases delayed this week, attention turned to the ADP report, which showed private payroll growth undershooting expectations, while a stronger-than-forecast ISM services PMI pointed to resilient activity in the sector. Bullion had surged more than 6% in the prior session, its biggest daily jump since 2008, after dip buyers stepped in following a sharp pullback earlier in the week. Safe-haven demand also remained supported by geopolitical tensions after US forces downed an Iranian drone near an aircraft carrier in the Arabian Sea, though the White House said US-Iran talks are still scheduled for Friday.

US stocks were mixed on Wednesday, with the S&P hovering around the flatline, the Nasdaq slipping 0.3%, and the Dow gaining 280 points, as the tech sell-off extended amid renewed concerns over AI-driven disruption. In contrast, energy, consumer staples, and health were the top-performing sectors. Investors also digested a fresh round of corporate updates. Eli Lilly shares surged more than 7% after reporting earnings and revenue above expectations and issued upbeat 2026 guidance. Alphabet rose 0.9%, while Qualcomm gained 2.7% ahead of its earnings release after the closing bell. Amgen climbed 4.5% after posting stronger-than-expected earnings and revenue. On the other hand, AMD plunged more than 12% after its forecast disappointed. Nvidia (-0.8%), Meta (-1.1%), Broadcom (-1.0%), Oracle (-3.7%), and Micron Technology (-3.2%) also moved sharply lower. Meanwhile, the ADP report showed that the US private sector added just 22K jobs last month, reinforcing signs of a cooling labour market.

The S&P Global Canada Composite PMI recorded 46.4 in January 2026, down from 46.7 in December and remaining below the 50.0 no-change mark for a third straight month. Manufacturing stabilised in January, while services fell to 45.8 from 46.5, with the latter the main driver of the downturn. New business volumes declined for a fourteenth consecutive month and continued to weigh on output. Backlogs of work decreased markedly again as firms were easily able to keep on top of workloads. Employment contracted for a fifth successive month, albeit modestly, as firms pared staff or chose not to replace leavers. Business confidence softened since December and remained well below trend. On the price front input cost inflation softened to its softest rise since November 2024, while output charge inflation remained solid and little-changed compared with December.

The average contract rate on 30-year fixed-rate mortgages for conforming loans of $806,500 or less in the US fell to 6.21% in the week ended January 30, compared to a four-week high of 6.24% in the previous period, according to the Mortgage Bankers Association. Still, mortgage applications declined 8.9%, extending an 8.5% drop in the previous week, with the winter storm taking a toll. Refinancing applications went down 4.7%, after a 15.7% drop and the purchase index tumbled 14.4% after decreasing 0.4%. “Winter Storm Fern likely had an impact as much of the country was snowed in, hampering homebuying activity. The annual increase in purchase applications was the weakest since April 2025", ” said Joel Kan, MBA’s VP.

Euro area annual inflation eased to 1.7% year-on-year in January 2026, down from 2.0% in December and in line with market expectations, marking its lowest level since September 2024. The decline came as the euro surged to a more than four-year high above $1.20 at month-end. Services inflation slowed to a four-month low of 3.2%, while energy prices fell further, dropping 4.1% compared with a 1.9% decline in December. By contrast, inflation picked up for unprocessed food (4.4% vs. 3.5%) and non-energy industrial goods (0.4% vs. 0.3%), while price growth for processed food, alcohol, and tobacco remained unchanged at 2.1%. Core inflation, excluding energy, food, alcohol, and tobacco, fell to 2.2%, the lowest since October 2021 and slightly below expectations of 2.3%. Among major eurozone economies, HICP eased in France (0.4% vs. 0.7%), Spain (2.5% vs. 3.0%), and Italy (1.0% vs. 1.2%), but rose in Germany (2.1% vs. 2.0%).