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Published : 05 Jan 2026, 11:14 PM
Stocks edged up, bonds steadied and oil prices held firm on Monday as investors reacted calmly to potential market ramifications of the US capture of Venezuelan President Nicolas Maduro.
A STOXX benchmark of Europe's biggest companies rose 0.3 percent while MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent to a record high and US futures such as S&P 500 e-minis gained 0.3 percent ahead of a packed week of economic data releases.
After the dramatic events in Venezuela at the weekend, US President Donald Trump said he was putting the South American nation under temporary American control and that he could order another strike if Venezuela does not cooperate with US efforts to open up its oil industry and stop drug trafficking. He also threatened military action in Colombia and Mexico.
"The removal of Venezuelan President Nicolas Maduro by the US is unlikely to have meaningful near-term economic consequences for the global economy," said Neil Shearing at Capital Economics. "But its political and geopolitical ramifications will reverberate."
Oil prices see-sawed within a narrow range as an OPEC+ vote to keep output unchanged was offset by concern over market disruption from events in oil-producing Venezuela. Brent crude futures LCOc1 were last up 0.5 percent at $61.06 a barrel.
Defence stocks led gains in Europe after the US military strikes stoked fresh concerns about geopolitical risks, with an index of defence shares up 3.7 percent to hit its highest in three months.
"Given the unexpected turn of events in Venezuela over the weekend, it remains to be seen whether the Trump administration has an appetite for more regime changes," said Vasu Menon at OCBC in Singapore.
"The strategic calculations are unfolding against the backdrop of a mid-term election year, and developments are unpredictable. This uncertainty could keep oil prices supported. A more fraught geopolitical environment may buoy haven assets like precious metals."
US MILITARY ACTION SPURS SAFE-HAVEN DEMAND
Gold prices rose on Monday, with spot prices up 2 percent at $4,418 an ounce, still short of last year's record high of $4,549.71.
Safe-haven bonds also held steady, with the yield on the euro zone's benchmark German 10-year Bund down 1.5 basis points at 2.9 percent, having risen 3 basis points last week. The yield on US 10-year Treasury bonds held at 4.1651 percent.
The US dollar index, which measures the dollar strength against a basket of six currencies, was last up 0.09 percent at 98.642, extending recent gains into a sixth consecutive day, as investors looked more at a slew of economic data due in the US than events in Venezuela.
The data rollout this week begins with ISM manufacturing figures on Monday and culminates with the monthly non-farm payrolls report on Friday.
Against the yen, the dollar was flat at 156.6 yen. Bank of Japan Governor Kazuo Ueda said on Monday that the central bank will continue to raise interest rates if economic and price developments move in line with its forecast after raising rates last month by 25 basis points to 0.75 percent.
