Omnis Agility update: January 2026
Market-moving events
Central bank action takes centre stage.
The US Federal Reserve cut interest rates by 0.25 percentage points, bringing its target range to 3.50%–3.75%, while the Bank of England also lowered rates by a quarter point to 3.75%. In contrast, Japan raised rates by 0.25 percentage points to 0.75%, marking their highest level in three decades. Each of these central bank moves was widely anticipated by markets.
Santa rally proceeds in the UK, Asia and Europe, but falters in the US.
A backdrop of falling interest rates, more resilient economic growth and improved sentiment around artificial intelligence (AI) saw UK, European and Asian equities perform strongly. Meanwhile, US equities underperformed as concerns surrounding elevated valuations saw the index finish largely flat.
US economic data remains mixed.
Incomplete datasets and delays caused by the government shutdown have resulted in mixed signals on employment and inflation. Meanwhile, delayed third-quarter US growth figures came in at 4.3%, the fastest pace in two years. This was almost twice the growth rate expected for the fourth quarter of 2025.
Investment highlights
No changes during the month.
Following November’s portfolio changes and rebalance, we made no changes to the portfolio composition in December
Remaining cautiously positioned.
We remain modestly underweight equities and modestly overweight fixed interest. This positioning reflects our caution around elevated equity valuations, particularly in the US, and concerns that cash flows generated by AI-exposed companies may be insufficient to cover the cost of the infrastructure spending required.
Issued by Omnis Investments, which is authorised and regulated by the Financial Conduct Authority. Registered address: Auckland House, Lydiard Fields, Swindon SN5 8UB. This update reflects our view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis Investments is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance. Approved by Omnis Investments on 1 January 2026.
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