ORLANDO, Florida, Jan 5 (Reuters) - World stocks hit new highs on Monday as investors shrugged off the U.S. capturing Venezuelan President Nicolas Maduro and saying it will take temporary control of the country, with a surge in energy stocks complemented by another wave of AI and tech optimism.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. Trump's Venezuela gambit tests investor appetite forgeopolitical risk 2. U.S. oil refiners win, Chinese rivals lose in Trump’sVenezuela strike: Bousso 3. AI-driven inflation is 2026's most overlooked risk,investors say 4. China's services growth hits 6-month low in December,shows private PMI 5. Bank of Japan chief vows to keep raising interest ratesToday's Key Market Moves
* STOCKS: New highs for Taiwan, South Korea, Japan'sTopix, MSCI Asia ex-Japan, Europe, and the Dow. Britain's FTSE100 has record high close. * SECTORS/SHARES: U.S. energy sector +2.7%, financials+2.1%. European tech +3.8%. Valero Energy +9%, Chevron +5%,Goldman Sachs +3.7%, Amazon +3%. * FX: Dollar hits one-month high but ends day lower forfirst fall in six sessions. China's spot yuan strongest sinceMay 2023 at 6.9770/$. * BONDS: U.S. Treasury yields fall as much as 4 bps, curvebull flattens, as investors eye U.S. payrolls data later in theweek. * COMMODITIES/METALS: Oil up nearly 2%. Gold +2.5%, silver+5%. LME copper above $13,000/ton for the first time as Chileanmine strike intensifies supply concerns.Today's Talking Points
* Bullish or bearish oil?
It is unclear
whether events in Venezuela will be bullish or bearish for oil prices. In the long term, securing a greater and more stable flow of crude from the country with the world's largest oil reserves should add to the existing supply glut. Hence some forecasts of oil down at $50/bbl or even lower.
But as SocGen analysts note, the world's largest reserves below ground don't mean more oil above it. It will take years to get that flow going - the capital needed is huge, and political risk means Venezuela won't be an attractive investment destination for a while. Indeed, the chaos could be mildly bullish for oil prices in the near term.
* New year, new highs
The new year has been marked by a renewed surge in risk appetite, lifting global stocks to new highs. Investors are putting money to work, and while various valuation metrics suggest headwinds ahead, momentum from last year continues to provide strong tailwinds.
The latest "stocks are expensive" metric to get chins wagging is the S&P 500's price-to-sales ratio, now at a record 3.30. But there's no sign of imminent reversal - the prospect of lower oil, low and steady interest rates, and incoming fiscal stimulus could stave off a correction for some time.
* China's FX
The U.S. dollar has got off to a pretty solid start in 2026, but not against the Chinese yuan. The greenback fell further below 7.00 per yuan on Monday to its lowest since May 2023, with traders citing strong demand for local currency from Chinese exporters.
The People's Bank of China has been guiding the yuan steadily higher in recent weeks but has had to cool the extent of its appreciation, which has been much greater on the spot market. Monday's fixing was 7.0230 - sub-7.000 fixings beckon.
What could move markets tomorrow?
* Germany inflation (December, prelim) * UK services PMI (December) * U.S. services PMI (December, final) * U.S. Treasury auctions * U.S. Richmond Fed President Thomas Barkin speaksWant to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here.
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(By Jamie McGeever; Editing by Nia Williams)
