[2026-01-20] Morning Market Briefing

[2026-01-20] Morning Market Briefing

The market at a glance

Global volatility limited as U.S. markets are closed

Asian markets stabilize on China's GDP surprise

Europe weak as tariff risks resurface

Korean market expected to be driven by individual stocks and industry reports

 

 

Global market trends

 

🇺🇸 U.S.

Closed for Martin Luther King Jr. Day

No trading across stocks, bonds and FICC

 

🇨🇳 China

Q4 GDP +4.5% YoY

Slightly above expectations (4.4%)

Policy expectations hold despite concerns about an economic slowdown

Stocks rebound steadily

 

🇪🇺 Europe

Greenland annexation issue reignites

U.S. threatens tariffs on 8 opposing countries

10% from February

25% from June

Major indices fall on geopolitical + trade risks

 

 

💱 FICC market trends

Global interest rate and FX moves limited due to U.S. market closure

Short-term wait-and-see mode ahead of events

 

What is FICC?

FICC = Fixed Income · Currency · Commodity
→ A term that groups together the bond, foreign exchange and commodity markets.

 

 

🗓 Key events this week (Korea time)

19th (Mon): U.S. market holiday

20th (Tue): China LPR rate decision, 3M earnings, U.S. Bancorp

21st (Wed): Korea January export/import trends (through the 20th), Samsung Biologics, Netflix

22nd (Thu): U.S. Q4 GDP

23rd (Fri): U.S. January S&P Global PMI (flash), Samsung Electro-Mechanics, Intel, Intuitive Surgical, Capital One

 

 

Summary of key research headlines

Macro / Strategy

Korea: Rebound in U.S. durable goods demand → expected recovery in non-semiconductor exports

Eurozone: Despite a manufacturing slowdown, the key drivers of economic recovery remain intact

Bonds: Limited possibility of a policy rate hike within the year

Credit: Spreads expected to narrow due to primary market effects

 

Global equities

U.S.: Pausing for breath as monetary policy and tariff uncertainty resurface

Europe: The tougher the response, the more long-term risks actually shrink

China: Trump-style Monroe Doctrine is a factor expanding short-term volatility

 

 

🏭 Industry and company report highlights

 

  • Defense: Large export projects expected to gain momentum in 2026

 

  • Shipbuilding/offshore: Entering an offshore plant cycle amid the global energy transition

 

  • Power equipment: Growing order backlog → improvements in both top line and profitability

 

  • IT services/AI: Direct beneficiaries of the spread of physical AI

 

  • Telecom: Dividend uncertainty already largely priced in

 

  • Energy: Improved earnings at refining subsidiaries drive holding company results

 

  • Bio: Visibility secured on turning profitable in 2025

 

  • Nuclear power: U.S. nuclear power entering a 10-year cycle starting in 2026

 

  • Solar: Domestic and overseas policy momentum resurfaces

 

  • Data centers: Accelerating shift to optics (光) → growing demand for optical communications

 

 

Summary

 

With U.S. markets closed, a market driven by reports and individual stocks rather than indices

China's economic indicators confirm downside resilience

Europe's tariff issue is short-term noise

In Korea, a selective approach focused on industries with high 2026 earnings visibility is effective