Macro Report
January 28 2026
FutureGate | Markets are increasingly reflecting a mix of strong cyclical data, major thematic shifts, and renewed interest in real assets. Morgan Stanley has lifted its long-term outlook for gold, projecting prices could climb as high as $5,700 as investors seek protection from fiscal risks, geopolitical uncertainty, and potential pressure on central bank independence. Citigroup struck a similarly bullish tone on silver, forecasting spot prices could reach a record $150, supported by easing inflation, expectations for rate cuts, tightening supply, and strong industrial demand linked to electrification and clean energy.
Economic data out of China offered early signs of stabilisation after a prolonged slowdown. Industrial profits rose 5.3% year-on-year in December, beating expectations and marking the first full-year increase since 2021. The improvement suggests deflationary pressures may be easing, helped by policy support and firmer pricing conditions in parts of the manufacturing sector. This rebound is being closely watched by global investors given China’s central role in commodity demand and global growth. Equity flows and sector trends also point to shifting investor preferences. European stock markets attracted inflows last year that exceeded the total seen over the previous decade combined, reflecting renewed confidence in the region’s valuations and earnings outlook. In consumer markets, electric vehicle sales overtook petrol-powered cars in the European Union for the first time, underscoring the structural transition underway in transport and energy usage.
On the corporate and political front, hedge fund manager Michael Burry disclosed fresh buying in GameStop, reigniting interest in the meme stock trade. In Washington, President Trump signalled a softer tone on aspects of the immigration crackdown following backlash linked to ICE enforcement actions, suggesting potential policy recalibration ahead of the election cycle. Meanwhile, India and the European Union finalised a long-delayed trade agreement that had been stalled for nearly two decades, a move seen as strategically important as India faces potential US tariff risks and Europe looks to diversify economic partnerships away from heavy reliance on Washington.
In the digital economy, shifting consumer behaviour is becoming evident. TikTok uninstalls reportedly surged 150% as users migrated toward a rival platform, UpScrolled, highlighting how quickly engagement can move in the social media landscape when sentiment turns or new alternatives gain traction.
