anuary markets reflected shifting trade dynamics, persistent inflation, and rising global risk – all building pressure beneath the surface. Geopolitics, central bank decisions and energy markets contributed to the tremors shaping the investment landscape to start the year.
Introduction
Global equity markets moved higher over the month of January. Tensions around Greenland eventually eased, raising hopes for global economic activity as U.S. and European Union (EU) tariff threats were removed. Enthusiasm for artificial intelligence stocks continued.
The Bank of Canada and the U.S. Federal Reserve Board (Fed) held their policy interest rates steady in January but acknowledged risks from geopolitical tensions, which could hinder economic conditions in the Canadian and U.S. economies. In Canada, the labour market showed more signs of stabilizing, and the unemployment rate in the U.S. fell at the end of 2025. China’s economy expanded in the fourth quarter of 2025, as reported in January, but the pace of expansion was slower than in the previous quarter.
The S&P/TSX Composite Index edged higher, reaching a new record high. The energy sector was the best-performing sector. U.S. equities advanced over the month. Government of Canada 10-year bond yields finished largely unchanged, while the yield on U.S. Treasury bonds increased. Oil and gold prices rose in January. Gold, along with steel and copper, reached new record highs.
