Global markets rallied on Tuesday, echoing the year’s first record on Wall Street as investors increased their bets on AI‑linked technology. This surge came despite the ouster of Venezuelan President Nicolás Maduro, which had initially caused oil prices to fluctuate. Investors have now turned their attention to U.S. monetary policy and the release of key data that could influence the Federal Reserve’s interest‑rate decision at the end of the month.
The surprise U.S. raid on Caracas, which resulted in Maduro and his wife being taken to New York to face drug charges, was largely ignored by traders. Analysts remain optimistic about equities this year, with artificial intelligence as a primary driver. Charu Chanana, chief investment strategist at Saxo Markets, said, “Global equities are likely to keep looking through the geopolitical shock unless it threatens the broader supply chain or tightens financial conditions, because geopolitics has become a persistent feature rather than a surprise.”
The Dow closed at a new record, boosted by a rally in tech giants such as Amazon and Meta, as well as energy companies. The S&P 500 and Nasdaq also rose, supported by data showing U.S. manufacturing activity contracted for the 10th consecutive month in December, giving the Fed fresh justification to cut rates. Upcoming jobs data could further bolster the case for easing.
Asian markets—including Hong Kong, Tokyo, Shanghai, and Seoul—experienced significant gains, with Seoul topping 4,500 points for the first time, driven by a strong performance from chip giant SK Hynix. In Sydney, Australia’s BlueScope Steel saw a substantial increase after announcing it was evaluating an US$8.8 billion joint takeover bid.
Oil prices slipped after rising 1.7 % on Monday, as the impact of developments in Venezuela was assessed. Although Venezuela holds significant oil reserves, a quick increase in output is unlikely due to infrastructure issues, low prices and political uncertainty. The situation is being closely monitored, and its potential impact on global oil supplies and prices will be critical in the coming days.
Key market figures included the Tokyo Nikkei 225, which rose 1.3 % to 52,518.08, and the London FTSE 100, which increased 0.5 % to 10,049.60. West Texas Intermediate and Brent crude prices declined, while the euro and pound made slight gains against the dollar. As markets evolve, investors will watch closely for the release of key data and the Fed’s interest‑rate decision, which could significantly affect the global economy.
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