🌟 Tech Titans Deliver, But ‘Hawkish’ Hopes Hit Precious Metals
It was a “week of two halves” for global markets. Investors started the week riding high on a wave of spectacular tech earnings—led by Apple’s staggering iPhone demand—before a sharp dose of reality hit on Friday. The nomination of Kevin Warsh as the next Federal Reserve Chair sent a clear “hawkish” signal (meaning interest rates might stay higher for longer), triggering a dramatic sell-off in gold and silver while causing US stocks to stumble at the finish line.
Despite the Friday wobble, the FTSE 100 managed to buck the global trend, finishing the week in the green thanks to its heavy weighting in banks and value stocks which often benefit when rate expectations rise.
📈 Weekly Scoreboard
Data as at close of business Friday, 30 January 2026.
| Index | Weekly Change | Current Level |
| FTSE 100 | 🔼 +0.8% | 10,223 |
| S&P 500 | 🔼 +0.3% | 6,939 |
| Nasdaq Composite | 🔻 -0.2% | 23,462 |
| Nikkei 225 | 🔼 +1.1% | 53,477 |
| EURO STOXX 50 | ➖ Flat | 5,950 |
| Shanghai Composite | 🔻 -1.0% | 4,118 |
🌍 Global Drivers & Macro
- The “Warsh” Effect: The biggest story broke late in the week with the nomination of Kevin Warsh as the next US Federal Reserve Chair. Warsh is viewed by markets as a “hawk”—someone who prioritises fighting inflation over stimulating growth. This immediately strengthened the US Dollar and caused a rapid unwind in speculative assets like silver and gold.
- Tech Earnings “Supercycle”: Before the Fed news took over, the narrative was dominated by Big Tech. Apple posted record-breaking revenue with CEO Tim Cook calling demand “simply staggering,” while other tech giants largely met or exceeded high expectations, proving that the AI-driven earnings boom has legs.
- Eurozone Growth Surprise: There was rare good news from Europe, where GDP grew by 0.3% in Q4, beating forecasts. This suggests the region might finally be turning a corner, though it wasn’t enough to spark a major rally across European indices this week.
🇬🇧 UK Corner (Focus for DIY Investors)
- FTSE 100 Resilience: The UK’s premier index outperformed its US peers this week. Why? The “Warsh nomination” implies higher rates globally, which boosts the profitability of big banks (like Lloyds and NatWest), both of which rallied. Conversely, the FTSE 250 (more domestic and growth-focused) dipped slightly, struggling under the weight of higher borrowing cost fears.
- BoE Watch: With UK unemployment ticking up to 5.1%, pressure is mounting on the Bank of England ahead of next week’s meeting (Feb 5). While markets don’t expect a rate cut immediately, investors are desperate for a signal that relief is coming by spring.
- The “Value” Rotation: We saw a classic rotation this week: money moved out of speculative mining stocks (due to crashing metal prices) and into dependable cash-generators like banks and consumer staples. For UK dividend investors, this was a broadly positive week.
🏦 Key Asset Movers
- 💷 FX (GBP/USD): The Pound was volatile, surging above $1.38 earlier in the week before sliding back to settle around $1.37 on Friday. The dollar’s sharp rebound on the Warsh news cut Sterling’s gains short.
- 🥇 Gold & Silver: A brutal end to the week. Gold, which had recently crossed the historic $5,000 barrier, slumped heavily on Friday, closing near $5,003. Silver fared even worse, crashing over 20% intraday—a stark reminder of how quickly crowded trades can unwind when the interest rate outlook changes.
- 🛢️ Oil (Brent): Crude oil prices crept higher, closing the week just above $70 per barrel. Tensions in the Middle East and steady demand forecasts are keeping a floor under energy prices for now.
📰 Key Headlines
- FT – UK inflation seen easing towards target: Bank of England analysis and recent retail price data suggest UK inflation has likely peaked and should drift closer to 2% from the spring, supporting the case for eventual rate cuts.
- BBC Business – UK retail and shop prices: Industry figures showed shop price inflation picking up again in January, highlighting that while headline inflation is falling, everyday costs for households are still under pressure.
- Reuters – Oil climbs on demand hopes: Brent crude’s rise over January was linked to improving growth expectations and ongoing supply worries, keeping energy markets tight and feeding through to inflation debates.
- Reuters – Global central banks stress patience: A round‑up of Fed and other central‑bank comments underlined that policymakers want more proof that inflation is beaten before cutting rates aggressively, which keeps a lid on bond‑market exuberance.
- Financial Times – Sentiment indicators flash optimism: Surveys and indicators tracking retail and institutional sentiment showed elevated optimism compared with last year’s gloom, but with some softening in late January as volatility briefly picked up.
📑 Companies Reporting
- Apple (US, S&P 500): Reported first‑quarter results this week, with analysts looking for low‑double‑digit revenue and earnings growth; the update reinforced confidence in its services and iPhone ecosystem, supporting the broader tech tone.
- Microsoft (US, S&P 500): Delivered key quarterly numbers with continued strength in cloud and AI‑related services, helping underpin the rebound in US indices from recent lows.
- Tesla (US, S&P 500): Results were closely watched for margins and demand in electric vehicles, contributing to notable share price swings as investors reassessed how fast growth can continue in a more competitive EV market.
- Meta Platforms (US, S&P 500): Earnings highlighted solid advertising and cost control, which fed into strong price moves and added fuel to the tech‑led equity rally.
- Exxon Mobil & Chevron (US, S&P 500): Energy majors reported amid rising oil prices; their updates on capital spending, dividends and buybacks influenced both energy shares and broader income‑oriented portfolios.
- LVMH & ASML (Europe): As European heavyweights in luxury and semiconductors, their earnings helped shape sentiment towards the EURO STOXX 50 and sectors tied to global consumer and tech‑hardware cycles.
⚖️ Investor Sentiment Dashboard
- Surveys and indicators show investors still leaning optimistic, but not euphoric. Earlier in January the CNN Fear & Greed Index sat in “Greed” territory around the mid‑60s, while AAII bullish sentiment approached 50%, both levels consistent with confident risk‑taking. More recently, the AAII survey showed some cooling in optimism in late January, and the VIX briefly jumped above 20 on geopolitical headlines before slipping back towards average, suggesting that while dips in confidence appear, they are being bought rather than sparking lasting fear.
- Fund‑flow data from major ETF providers and custodians indicate continued inflows into global equity funds, particularly US large‑cap and technology‑focused strategies, alongside more selective buying in emerging markets and ongoing interest in money‑market and short‑duration bond funds as a “yield with safety” anchor. Overall, this mix points to a broadly Risk‑On stance, but with investors keeping some dry powder in cash and bonds in case volatility returns
📅 Next Week’s Radar
- 🇬🇧 BoE Interest Rate Decision (Thu, Feb 5, 12:00 PM): The main event for UK investors. Rates are expected to hold, but the voting split and meeting minutes will tell us if a cut is coming in March or May.
- 🇺🇸 US Non-Farm Payrolls (Fri, Feb 6, 1:30 PM): The definitive check-up on the US economy. A “too hot” number could spook markets further about higher rates.
- 🇪🇺 ECB Rate Decision (Thu, Feb 5): Expected to hold, but watch for comments on the surprisingly decent GDP data.
⚡ The Final Take
This week taught us that while corporate fundamentals remain strong (thank you, Apple), macro policy still wears the crown. The market can handle good news, but it gets nervous when the “cost of money” outlook changes. For next week, keep your eyes glued to the Bank of England—if they sound even slightly more optimistic about cutting rates, the FTSE 250 could be due for a catch-up rally.
© Clearly Investments Ltd. Educational information only. This is not investment advice.
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