ETF Market Analysis: Oil & Hang Seng Set for January Gains January 9, 2026

ETF Market Analysis: Oil & Hang Seng Set for January Gains

Exchange-traded funds delivered mixed results in December, with notable divergence across asset classes. Gold-tracking ETF GLDM emerged as the top performer, gaining 2.3%, followed closely by Singapore equities ETF ES3, which advanced 2.2%. These gains contrasted sharply with the oil-tracking ETF XOP, which posted the month’s worst performance, down 5.1%.


Current Market Trends and Technical Analysis

The current technical landscape reveals distinct patterns across major asset classes. Gold and Singapore equities have established clear upward momentum, positioning themselves favourably for continued strength. Meanwhile, several major indices and commodities are trading in a range-bound pattern. The S&P 500, US Treasury bonds, Oil, and the Hang Seng Index are all consolidating within defined trading ranges, suggesting potential breakout opportunities. Bitcoin stands out as the only asset class currently in a confirmed downtrend.


January Outlook and Investment Opportunities

Looking ahead to January, market conditions suggest selective opportunities for investors. Oil and Hang Seng Index ETFs are expected to outperform amid an otherwise lacklustre month for broader markets. This projection represents a notable shift for oil, which may recover from its poor showing in December.

Conversely, investors should prepare for potential pullbacks in US Treasury bonds and gold ETFs, despite gold’s strong December performance. The precious metal’s recent gains may face near-term consolidation pressure.


Market Consolidation Expected

Several asset classes are likely to trade sideways in January. ETFs tracking the S&P 500, Bitcoin, and Singapore equities are expected to enter consolidation phases, suggesting limited directional movement despite varying underlying fundamentals.

This mixed outlook reflects the complex interplay of global economic factors and technical conditions that continue to influence ETF performance across different asset classes and geographic regions.


Frequently Asked Questions

Q: Which ETFs performed best in December?
A: Gold ETF GLDM was the top performer with a 2.3% gain, followed by Singapore equities ETF ES3 with a 2.2% increase.

Q: What was the worst-performing ETF in December?
A: Oil-tracking ETF XOP was the worst performer, declining 5.1% during the month.

Q: Which asset classes are currently in uptrends?
A: Gold and Singapore equities are currently showing upward momentum and established uptrends.

Q: What assets are expected to outperform in January?
A: ETFs tracking oil and the Hang Seng Index are expected to deliver gains in January.

Q: Which ETFs may see pullbacks in January?
A: US Treasury bonds and gold ETFs are likely to experience pullbacks despite gold’s strong December showing.

Q: What assets are in consolidation phases?
A: The S&P 500, US Treasury bonds, Oil, and Hang Seng Index are currently in range consolidation, while Bitcoin is in a downtrend.

Q: Which ETFs are expected to see sideways movement in January?
A: ETFs tracking the S&P 500, Bitcoin, and Singapore equities are likely to experience price consolidation with limited directional movement.


This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst. 

 

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About the author

Zane Aw

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