Markets in Motion as Central Banks Data and Earnings Drive Volatility (February 2 – 6, 2026, Recap)

Last week, global markets were shaped by a busy calendar of economic data, central bank decisions, and major corporate earnings. Key indicators from the US, Europe, and Asia influenced currency moves, commodities, and equity markets, while earnings from major global companies added to market volatility and investor sentiment.

Major Economic Indicators and Events in Review

Monday, February 2

17:00 – USA: ISM Manufacturing PMI (USD)

ISM Manufacturing PMI rose to 52.6, marking the first expansion in US manufacturing in 12 months, led by stronger new orders and production. Employment and inventories remained in contraction, while prices continued to rise, and supplier deliveries slowed.

The EURUSD fell by 0.48% on the day.

Tuesday, February 3

05:30 am – Australia: Cash Rate (AUD)

The central bank of Australia raised the cash rate by 25 basis points to 3.85% as inflation pressures re-emerged in late 2025, driven by strong demand, tight labor conditions, and easing financial conditions. Policymakers warned inflation is likely to stay above target amid ongoing capacity constraints and economic momentum.

The AUDUSD increased by 1% on the day.

Wednesday, February 4

17:00 – USA: ISM Services PMI (USD)

The US ISM Services PMI rose to 53.8% in January 2026, signaling continued expansion with all major subindexes in growth territory. Strong business activity, new orders, and improving employment point to a resilient start to the year for the services sector.

The EURUSD fell by 0.14% compared to the previous day.

Thursday, February 5

14:00 – UK: Official Bank Rate (GBP)

The Monetary Policy Committee (MPC) narrowly voted to keep Bank Rate at 3.75%, with inflation expected to fall back to target as growth and labor market pressures ease. Policymakers signaled that further rate cuts are likely, though the timing will depend on inflation trends.

The GBPUSD fell by 0.82% on the day.

15:15 – Eurozone: Main Refinancing Rate (EUR)

The ECB kept interest rates unchanged, reaffirming that inflation is on track to stabilize at its 2% target while the economy remains resilient. Policymakers will continue with a data-dependent, meeting-by-meeting approach amid ongoing global uncertainty.

The EURUSD fell by 0.19% on the day.

15:30 – USA: Unemployment Claims (USD)

US weekly jobless claims rose to 231,000 due to winter storms, while job openings fell to a more than five-year low, driven largely by declines in professional and business services. Despite softer labor demand, hiring improved modestly, and overall labor market conditions remain broadly stable.

The USDJPY rose by 0.077% on the day.

Friday, February 6

15:30 – Canada: Employment Change (CAD)

Canada lost 24,800 jobs in January, driven by a sharp drop in part-time work, while full-time employment rose and unemployment fell to 6.5% as fewer people looked for work. Slowing wage growth and a lower employment rate point to a softening labor market, supporting expectations that interest rates will remain unchanged.

The USDCAD increased by 0.34% on the day.

17:00 – USA: Prelim UoM Consumer Sentiment (USD)

Consumer sentiment was largely unchanged, remaining about 20% below January 2025 levels despite being the highest since August 2025. Gains among wealthier, stock-owning households were offset by persistent pessimism among others, with high prices and job security concerns continuing to weigh on confidence.

The EURUSD increased by 0.35% on the day.

17:00 – USA: Prelim UoM Inflation Expectations (USD)

Year-ahead inflation expectations fell to 3.5%, the lowest since January 2025, though still above pre-pandemic norms. Long-run expectations edged up to 3.4%, remaining elevated compared with recent historical levels.

Commodities

1. Crude Oil
   Crude oil prices decreased by 3.41% over the past week
2. Brent Oil
   Brent was down 2.51% compared to the previous week
3. Gold
   The precious metal Gold (XAUUSD) concluded the week on Friday with a 1.41% weekly increase
4. Silver
   XAGUSD decreased by 8.50% from last week

Stock Market

1. S&P 500 decreased by 0.14%
2. DJIA was up 2.59%
3. NASDAQ 100 decreased by 1.87%

Top Gainers

1. Rich Sparkle Holdings Limited (ANPA) 260.99%
2. Liminatus Pharma, Inc. (LIMN) 234.42%
3. Darkiris Inc. (DKI) 78.38%

Top Losers

1. Elong Power Holding Limited (ELPW) -92.11%
2. Phoenix Asia Holdings Limited (PHOE) -89.70%
3. Smart Digital Group Limited (SDM) -86.60%

Company Earnings (February 2– 6)

Monday, February 2: DIS (The Walt Disney Company)

Tuesday, February 3: MRK (Merck & Co., Inc.)

Tuesday, February 3: PFE (Pfizer Inc.)

Wednesday, February 4: GOOGL (Alphabet Inc.)

Thursday, February 5: AMZN (Amazon.com, Inc.)

Disney reported a strong first quarter, with profits rising to $1.63 per share and revenue reaching nearly $26 billion, beating expectations. Growth was driven mainly by its theme parks and resorts, along with continued improvement in its streaming business.

DIS shares fell by 3.63% over the past week.

Merck beat fourth-quarter earnings and revenue estimates on strong sales of its cancer drug Keytruda, but issued cautious 2026 guidance below expectations as it prepares for patent expirations and rising generic competition.

MRK shares jumped 10.57% compared to the previous week.

Pfizer beat fourth-quarter expectations with adjusted earnings of 66 cents per share on $17.6 billion in revenue, despite weaker demand for Covid products. The company reaffirmed its modest 2026 outlook, betting on cost cuts and new pipeline investments to offset declining sales from Covid and older drugs.

PFE shares increased by 2.95% over the past week.

Alphabet delivered a strong Q4, with revenue of $113.8 billion and earnings of $2.82 per share, driven by rapid growth in Google Cloud and AI-powered services. Cloud revenue surged 48%, and cash flow hit a record, reinforcing confidence in Alphabet’s AI-led growth strategy.

GOOGL shares fell by 4.48% compared to the previous week.

Amazon shares fell after the company missed earnings with EPS of $1.95 and forecast a sharp rise in 2026 capital spending to about $200 billion. Investors reacted cautiously despite the strong revenue of $213.4 billion and solid growth in AWS and advertising.

AMZN shares fell by 12.11% over the past week.

Conclusion

Overall, the week highlighted a clear contrast between resilient economic activity and cautious market sentiment. While key data pointed to steady growth and easing inflation pressures, uncertainty around policy direction, rising costs, and heavy corporate spending kept markets volatile, leaving investors focused on upcoming data for clearer direction.