Markets Today: German Factory Orders Surge, Nikkei Slips as Markets Eye NFP Data & Supreme Court Tariff Ruling

[Ben Graham]

Asia Market Wrap - Nikkei Retreats, Softbank Down 7.6%

Most Read: 2026 US Dollar Forecast: How the Fed, Government Spending, and AI Will Drive Volatility

Stock markets in Taiwan and South Korea dropped from their record highs on Thursday because investors started to worry that Artificial Intelligence (AI) companies were becoming too expensive. This change in mood hurt major tech companies, with Samsung falling 1.6% and TSMC losing its earlier gains.

Japanese markets also had a bad day, falling for the second time in a row as traders sold stocks to lock in their recent profits. The optimism from the start of the year is fading due to growing concerns about the global economy and politics, specifically China's new ban on sending certain supplies to Japan.

As a result, big Japanese tech companies like SoftBank and Tokyo Electron saw their share prices tumble, and major banks also lost value.

German Factory Orders Surge, Swiss Inflation Ticks Higher

Germany's factory orders surprised everyone by jumping 5.6% in November 2025, completely defying predictions of a drop. This marks the third month of growth in a row and the strongest performance in nearly a year.

The surge was driven mainly by massive orders for metal products and military/transport vehicles (like ships and trains). Demand was strong everywhere, rising significantly from both domestic buyers and international customers in the Eurozone. Even without counting these huge one-time contracts, regular orders still grew steadily.

Meanwhile, consumer prices in Switzerland barely budged, rising just 0.1% in December compared to last year. This was exactly what experts expected. While things like alcohol, tobacco, and restaurant meals got a bit more expensive, the cost of food, clothes, and transport fell, keeping overall inflation very low. Core inflation (excluding volatile food and energy) rose slightly to 0.5%, showing that price pressures remain very weak.

European Session - European Stocks Cautious, Defence Sector Gains

European stock markets dropped further on Thursday as investors paused to rethink their strategies following a strong start to the year.

The STOXX 600 index fell 0.2%, slipping back slightly after reaching a historic milestone earlier in the week. While the market isn't in full panic mode over the situation in Venezuela, tension is lingering; the US has seized two oil tankers and announced plans to manage Venezuela's oil revenue indefinitely, keeping traders cautious.

This uncertainty fueled a rally in defense stocks, which climbed to a record high for the fifth day in a row.

In contrast, shares of AB Foods (owner of Primark) crashed over 10% after the company warned of falling profits due to weak sales, a situation made worse by news that UK regulators are speeding up a probe into its deal to buy the bread maker Hovis.

On the FX front, the US dollar is rising for the third day in a row, but investors are acting carefully as they wait for Friday's important employment report. The main index for the dollar went up a little bit to 98.80, recovering some ground after a bad performance last year.

Most rival currencies weakened; the Euro dropped to $1.1670, continuing its recent slide, and the Australian dollar fell back from the 15-month high it reached earlier this week.

However, the Japanese Yen rose slightly as nervous traders avoided making big bets until the new economic numbers were released.

Currency Power Balance

zoom_out_map

Source: OANDA Labs

Oil prices stabilized on Thursday following two days of losses, as investors weighed the impact of a massive buildup in US fuel supplies against the latest political developments in Venezuela.

Both Brent and U.S. crude futures inched up by just 6 cents, holding near $60 and $56 per barrel, respectively.

In contrast, gold prices slipped 0.4% to approximately $4,435 per ounce, pressured by a stronger US dollar. Traders appear to be sitting on the sidelines, waiting for the upcoming US jobs report to better understand the future of interest rates and how the US standoff with Venezuela might evolve.

Read More:

Gold (XAU/USD) Slips 1.2% Before 50-Day MA Provides Support. Acceptance Above $4500/oz Remains Key

EUR/USD Forecast: Technicals and Seasonality Hint at Another Leg to the Downside

Bitcoin (BTC/USD) Technical Outlook: Acceptance Above $95000 Needed for Bulls to Seize the Initiative

Economic Calendar and Final Thoughts

The European session is set to see the release of a host of mid-tier data in a short while. The data includes the release of the November PPI and unemployment rate.

Moving into the US session, market participants are focused on US employment data, specifically the "Challenger" report on job cuts and the weekly jobless claims figures.

The US dollar has remained surprisingly strong despite falling oil prices, which are dropping as markets take President Trump's plan to increase Venezuelan oil supply seriously. However, this dollar strength might be limited; once the major monthly jobs report is out of the way on Friday, low oil prices could finally drag the currency down.

Additionally, the US. Supreme Court is scheduled to rule on tariffs tomorrow. Most experts expect the court to rule against the tariffs, which could actually boost the dollar, as investors believe removing these trade barriers would strengthen the job market and encourage the Federal Reserve to keep interest rates higher.

zoom_out_map

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100

From a technical perspective, the FTSE 100 index has finally breached the psychological 10000 mark.

Price has pulled back since with bouts of volatility and that shouldn't be a surprise. This morning we saw a pretty close retest of the 10000 psychological level before bouncing.

The one concern for bulls at the moment is that the index is hovering in overbought territory which means a pullback may be imminent.

Immediate support which may be tested in the near-term include the 9973 and 9943 handles respectively.

However, a key level on the four-hour chart for bullish continuation will be the psychological 10000 mark. A break of this level could bring a deeper correction into play.

FTSE 100 Index Daily Chart, January 8. 2026

zoom_out_map

Source: TradingView.com (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2026 OANDA Business Information & Services Inc.