Domestic Europe & Asia–Pacific Daily INSTAT Report, January 16, 2026
Domestic Europe stays firm as Asia–Pacific tech and financials drive upside under uneven policy risks
Processing Note: This is the first INSTAT A (Europe & Asia-Pacific Daily Report using the new publishing schema that I created this week. Every trading day, Monday through Friday, I will publish an INSTAT A and INSTAT B (US, Canada and the Americas) report after these markets close. I am republishing this report at billcara.com to encourage free subscribers to register at INSTAT.substack.com to receive notifications of the reports and to pay for the subscription if you believe ten of these fact-based reports weekly, covering daily trading of 449 key stocks across about 25 stock markets worldwide are worth $200/year.
Executive Summary
Domestic Europe and Asia–Pacific show a mixed but generally positive INSTAT profile today, with strength concentrated in large banks, energy, industrials, and defense, while parts of consumer, telecom, and old-line tech remain under pressure. European indices such as France, Germany, Spain, the Netherlands, Switzerland, the UK, and the Nordics continue to ride a strong start to 2026, helped by better risk appetite, record regional benchmarks, and ongoing interest in tech, financials, and defense plays. Asia–Pacific is led by India, Korea, Taiwan, Japan, and Australia, where technology and cyclicals benefit from the global AI cycle, solid earnings expectations, and rotation out of expensive US mega-caps.
Key INSTAT signals for investors:
Many European financials, energy, and industrials show Strongly Bullish or Bullish INSTAT scores, with AT and ST also positive, confirming trend-following long bias rather than short-term mean reversion.
Asia–Pacific standouts include Korean shipbuilders and defense names, Indian financials and SOEs, Taiwan and Japan semiconductors and equipment, and Australian miners and banks, all with very high IN and INSTAT scores.
Weak clusters appear in Chinese A and H shares (especially telecoms, consumer staples, and big banks), selected UK defensives, and some Indian and European consumer names that show Strongly Bearish INSTAT with negative ST and AT, signaling ongoing distribution rather than capitulation lows.
Key anomalies include very large 1 Month, YTD, and 1 Year moves in European and Asian defense, shipbuilding, and AI-linked tech, along with strong multi-month rallies in some Indian PSU and financial stocks and selected Chinese and Hong Kong recovery themes. These moves are big but still plausible within the INSTAT rules; there are no price returns above 100% over the standard look-backs, so no implausible outliers are flagged today.
Macro and policy context largely supports the bullish signals in Europe and much of Asia–Pacific. Europe enjoys record equity levels, aided by lower rates, fiscal support, and strong interest in industrials, materials, and financials. Asia–Pacific benefits from AI supply-chain leadership, cheaper valuations versus the US, and better relative growth in India, Korea, and parts of ASEAN, even as China and some exporters face policy and demand uncertainty. For independent investors, the main opportunity lies in staying overweight quality financials, industrials, energy, and AI-linked tech across Europe and Asia, while treating deep-value China and weaker defensives with more caution and tighter risk controls.
