Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
British consumer confidence improved in January, reaching its highest level since August 2024, as households became more optimistic about their personal finances even while concerns about the wider UK economy persisted. According to a long-running survey released Friday by market research firm GfK, the consumer confidence index rose to -16 in January, up one point from December and in line with expectations from a Reuters poll of economists.
Although the improvement was modest, it marked a notable shift in sentiment after months of fragile morale. GfK noted that Britain’s consumer confidence has not been in positive territory for more than a decade, last doing so ahead of the 2016 referendum on leaving the European Union. This highlights how deeply entrenched caution remains among UK households despite short-term gains in confidence.
The January survey showed mixed results across its components, with three out of five measures of confidence declining. Most notably, consumers remain pessimistic about the broader economic outlook. An index tracking expectations for the UK economy over the next 12 months fell by two points to -31, underscoring continued anxiety about growth, inflation, and stability. In contrast, expectations for personal finances improved sharply, rising four points to +6, suggesting households feel better positioned to manage their own budgets.
Neil Bellamy, consumer insights director at GfK, said consumers are increasingly focusing on factors within their control, such as spending and saving, while remaining wary of national economic conditions. He described the UK economy as appearing “like an untethered boat drifting slowly out to sea” in the eyes of many consumers.
Britain’s economic backdrop remains challenging. Economic growth has been sluggish, inflation rose last month for the first time since July, and wage growth has eased. However, Bank of England Governor Andrew Bailey has indicated inflation could return close to the central bank’s 2% target by April or May, offering some reassurance.
Meanwhile, official data due later Friday is expected to show a 0.1% decline in monthly retail sales for December, reflecting continued pressure on consumer spending. The GfK survey was conducted between January 2 and January 15 among 2,002 respondents across the UK.
