Oil prices fell back on Monday (January 5, 2026) while precious metals prices rose as markets reacted calmly to the US capture of Venezuelan President Nicolas Maduro in a weekend raid.
Asian shares rose on heavy buying of technology stocks after modest gains on Wall Street on Friday (January 2). The S&P 500 future was up 0.2% while the Dow Jones Industrial Average future was almost unchanged.
Follow live updates of US-Venezuela tensions on January 5, 2025
In early European trading, Germany’s DAX was up 0.8% at 24,728.94, while the CAC 40 in Paris was up 0.3% at 8,216.98. Britain’s FTSE 100 rose 0.2% to 9,968.71.
“While the US military’s capture of Venezuelan President Mr Maduro is making headlines, financial markets appear unaffected by it,” Thomas Matthews of Capital Economics said in a report. “We agree with the underlying view that the near-term economic and financial impacts are modest.”
US benchmark crude oil rose slightly shortly after the start of trading on Monday (January 5). But it later fell 36 cents to trade at $56.96 per barrel. Brent crude, the international benchmark, fell 34 cents to $60.41 a barrel.
After years of neglect and international sanctions, Venezuela’s oil industry is in shambles. It may take years and large investments to increase production dramatically. But some analysts believe its current production of about 1.1 million barrels per day could double or triple quite quickly.
With oil levels already abundant, crude was already trading near its lowest level in nearly six months.
In any case, the US move rattled financial markets as traders took into account the uncertainty created by President Donald Trump’s unusual military campaign and his insistence that the US would run Venezuela after Mr Maduro’s ouster.
Gold prices jumped 2.7% and silver prices jumped 6.6%.
Such assets are often considered safe havens in times of geopolitical turmoil.
“Investors are happy to take risk, but they want insurance in the drawer. It’s confidence with the hedge, not excitement,” Stephen Innes of SPI Asset Management said in a comment.
Share prices in Asia rose sharply.
In Tokyo, the Nikkei 225 jumped 3% to 51,832.80, its highest since hitting a record of 52,411.34 on Oct. 31. The index closed at a year-end high for 2025 and only resumed trading on Monday (January 5).
“Looking at the environment around the market, various risk factors are constantly present. We should keep an eye on geopolitical risks in Ukraine, the Middle East and East Asia, the US-China trade war, monetary policies in other countries and their developments, and corporate performance trends in Japan,” Japan Exchange Group CEO Hiromi Yamaji said at the market’s traditional New Year opening ceremony.
South Korea’s Kospi rose 3.4% to 4,457.52, a record. It also closed at a record high on Friday (January 2).
Australia’s S&P/ASX 200 closed flat at 8,728.60, while Taiwan’s benchmark rose 2.6%.
In other trading early on Monday (January 5), the dollar rose to 156.88 JPY from 156.82 yen. The euro fell to $1.1680 from $1.1726.
This week is the first full week of the new year. It will bring several closely watched US economic updates, some of the last major updates the Fed will see before its next meeting in late January.
On the agenda are private reports on the state of the services sector, which forms the largest segment of the US economy along with consumer sentiment. A government report on the job market will also be released. The hope is that they will help paint a clearer picture of how different parts of the U.S. economy fare in 2025 and where it might head in 2026.
On Friday (January 2), U.S. stocks opened the new year with modest gains.
The S&P 500 rose 0.2%, and the Dow gained 0.7%. The Nasdaq Composite fell less than 0.1% after reporting a sales decline for the second consecutive year, led by a 2.2% loss for Microsoft and a 2.6% decline for Tesla.
NVIDIA, Microsoft and Tesla are among the most valuable companies in the world, and their inflated valuations give them greater influence over the direction of the stock market. This sometimes involves pushing the market up and down on an hour-by-hour basis.
published – January 05, 2026 05:34 PM IST
