Global financial markets began 2026 with broadly constructive sentiment, as risk assets advanced while investors remained attentive to macroeconomic and geopolitical crosscurrents. Equities posted solid gains, supported by improving risk appetite, a weaker US dollar, and strength in select technology-linked segments, which contributed to notable outperformance in several non-US developed and emerging markets. By contrast, core government bond markets were comparatively range-bound, while credit delivered modest positive returns. Major central banks largely maintained existing policy settings during the period, reinforcing a data-dependent outlook and keeping attention focused on the trajectory of inflation, growth, and labour-market conditions. In commodities, price action was more pronounced, with energy markets reacting to elevated geopolitical risk before retracing, and gold showing resilience as investors balanced optimism with ongoing uncertainty.