🌏 Morning Update - 6 February 2026 (Fri)

📉 Market mood: US equities extended yesterday’s declines, with selling spreading across the entire market. The S&P 500 fell 1.2%, the Dow Jones also lost 1.2%, while the Nasdaq retreated nearly 1.6% as pressure on technology stocks intensified.

The sell-off was driven by a combination of softer US labour market signals and, above all, earnings-related concerns in the tech sector. Amazon reported strong revenues and further growth in AWS, but its shares dropped around 10% in after-hours trading. Investors focused on the company’s plans for massive AI investments, which could approach $200 billion in 2026, raising concerns about future cash flows.

🌏 Asia: Asian markets traded mixed under the weight of deteriorating global sentiment. Hong Kong’s Hang Seng fell 1.13%, while Australia’s ASX 200 dropped 2.26% after hawkish signals from the RBA. In contrast, Japan’s Nikkei 225 rose 0.29% ahead of Sunday’s elections, and China’s Shanghai Composite edged up 0.11%.

Polls in Japan point to a potential clear victory for Prime Minister Takaichi’s camp, increasing expectations of fiscal expansion and possible tax cuts. Meanwhile, a Bank of Japan board member struck a cautiously hawkish tone, keeping further tightening on the table and warning that a weak yen continues to fuel inflation. Japanese household spending fell 2.6% year-on-year in December, a sharp deterioration from November.

In Australia, RBA Governor Bullock reiterated that the recent rate hike was necessary due to capacity constraints, a strong labour market, and persistent inflation pressures.

💱 FX: The US dollar remains firm overall. In Asia, the PBOC set the daily USD/CNY fixing at 6.99590, notably weaker than market expectations. The Reserve Bank of India kept its key rate unchanged at 5.25%, as widely expected.

🛢️ Commodities:

• 🥇 Gold and silver saw a partial stabilisation after extreme volatility earlier in the week. Precious metals are rebounding from recent declines, supported by renewed demand after margin requirements were raised.
• 🛢️ Oil remains under pressure, reflecting demand concerns and the broader risk-off environment.

₿ Crypto: The cryptocurrency market is showing a partial rebound. bitcoin is up more than 2%, while Ethereum is gaining over 3%, recovering alongside broader risk sentiment.

🗓️ Today’s focus - Economic Calendar:

🇨🇦 Canada: Employment data and the Ivey PMI, key for CAD pairs.

🇺🇸 United States: Non-Farm Payrolls, Unemployment Rate, and Average Hourly Earnings for January - the main volatility trigger across FX, indices, metals, and crypto.

⚠️ Volatility is likely to remain elevated into the data releases. Stay disciplined, manage risk carefully, and trade with a clear plan. Good luck and steady hands today! 💪📊