Global financial markets are staging a significant rebound today, Tuesday, 13 January 2026, as investors fixate on a crucial US Consumer Price Index (CPI) report, effectively pushing a “noisy” backdrop of geopolitical tension and Federal Reserve instability into the shadows.
In what local analysts are calling a “resilience rally,” major stock indices, from the NGX in Lagos to the S&P 500 in New York, are trending upward. Traders are betting that cooler-than-expected US inflation data will force a de-escalation in the current standoff between the White House and the Federal Reserve.
While headlines over the weekend were dominated by the threat of a criminal indictment against Fed Chair Jerome Powell, the market’s internal compass has shifted toward the economy’s “fundamentals.”
Analysts expect today’s US inflation data to show a moderation toward 2.7%, a signal that could embolden the Fed to proceed with interest rate cuts despite political pressure.
Investors are largely shrugging off the DOJ investigation into Powell’s “HQ renovations,” viewing it as a political “off-ramp” rather than a true systemic risk.
Even the new 25% tariff on countries trading with Iran has failed to dampen the rally, as the prospect of cheaper Venezuelan oil hitting the Gulf Coast provides a necessary energy cushion.
| Market Index | Movement | Status |
| S&P 500 (US) | +0.4% | Approaching a new record of 7,000. |
| STOXX 600 (Europe) | +0.1% | Hit a fresh record high this morning. |
| Nikkei 225 (Japan) | +1.0% | Driven by pro-stimulus political speculation. |
| NGX All-Share (Nigeria) | +0.2% | Tracking global sentiment and banking sector gains. |
For Nigerian investors and the Central Bank of Nigeria (CBN), the US inflation reading is more than just a statistic, it is a lifeline for the Naira.
As the “Powell drama” erodes the dollar’s “institutional premium,” the Greenback has softened. This provides a temporary reprieve for the Naira, which has struggled against the ₦1,700/$ mark in the unofficial market.
If US inflation remains cool, the likelihood of a January rate cut increases. This would make emerging markets like Nigeria more attractive to Foreign Portfolio Investors (FPIs) seeking higher yields.
With Brent Crude hovering near $65, the combination of high oil revenue and a softening dollar could improve Nigeria’s foreign exchange reserves, which the CBN recently projected to hit $51 billion by year-end.
“The market is choosing to ignore the fire in the kitchen (geopolitics) because the feast in the dining room (low inflation) looks too good to pass up. For Nigeria, any sign of a ‘dovish’ Fed is a green light for our own recovery.” – Samson Esemuede, Chief Investment Officer at a Lagos-based firm.
The full US CPI report is due in less than two hours (1:30 PM GMT). A “hot” reading (above 0.4% month-over-month) could instantly reverse these gains, triggering a massive sell-off as markets re-price the risk of a Fed that is both politically besieged and economically handcuffed.
