All Eyes on India- EU Trade Deal

The S&P 500 and Nasdaq rose for a fourth straight session on Monday as investors awaited major earnings reports and a Federal Reserve policy update this week. Both indexes reached their highest levels in over a week, marking their longest winning streak since December.

Apple, Meta, Microsoft, and Tesla report quarterly results this week in a crucial test for the AI-driven rally. Investors will scrutinise whether AI spending is delivering tangible returns. Given elevated tech valuations, guidance will be critical even minor disappointments could trigger a reassessment of AI investments.

The dollar faced renewed pressure in early 2026 as multiple factors, including Washington’s preference for a weaker currency, challenged assumptions about the greenback’s stability.

The dollar headed Monday for its steepest three-day decline against major currencies since last April, when President Trump’s “Liberation Day” tariffs triggered a sharp U.S. asset selloff.

Gold surged to a record high above $5100 on Monday as investors sought safety amid geopolitical tensions, while silver and platinum also hit all-time highs.

President Trump announced Monday that he would increase tariffs on South Korean goods for failing to honour an earlier trade agreement. The “reciprocal tariffs” would rise from 15% to 25% on South Korean autos, lumber, pharmaceuticals, and other products.

Federal Reserve officials are scheduled to meet Jan. 27 and 28 to set the monetary policy. Financial markets expect the Fed to hold interest rates steady at the January meeting.

India and the EU are expected to announce the conclusion of the proposed trade deal later today, after nearly a decade of negotiations.

Indian markets are poised to open higher today, driven by optimism over the freshly concluded landmark trade deal with the EU, which promises boosted exports in sectors such as textiles, pharma, and IT services.

Adding to the positive sentiment are rising expectations ahead of the Union Budget presentation this weekend, on February 1, with anticipation for tax relief, infrastructure spending, and economic reforms.

Source: HSL Prime Daily, 27 Jan 2026

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