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Energy and chip stocks drive risk rally

Global equity markets started the week on a positive note, with US stocks advancing on Monday and the Dow Jones Industrial Average closing at a new record high as investors piled into energy names on hopes of increased business linked to Venezuela. The upbeat tone carried into Asia on Tuesday, where Japanese and other regional indices were buoyed by continued gains in technology and chipmaking stocks tied to artificial intelligence demand. The risk-on mood came despite further signs of weakness in US and Swiss manufacturing, with PMI data for December remaining in contraction territory, while services activity in Switzerland showed a solid rebound. In commodities, copper extended its powerful rally to a fresh record above USD 13,000 per ton, supported by robust US demand, supply disruptions and broader strength in precious and industrial metals.

Date January 6, 2026
Author Shane Strowmatt, Senior Investment Writer
Reading time 5 minutes

US equities advanced on Monday, with the Dow Jones Industrial Average closing 1.2% higher at a record 48,977.18 points, bringing the 50,000 mark into close reach, as investors rotated into energy stocks on hopes of increased business in and with Venezuela. Shares in oil and gas companies were among the main beneficiaries, with Chevron rising just over 5% as the only major US producer currently active in Venezuela, while peers including ConocoPhillips, Exxon Mobil and oilfield service providers such as Baker Hughes, Halliburton and SLB also posted strong gains. The US military strike on targets in Venezuela and the capture of President Nicolas Maduro, who pleaded not guilty before a New York court, did little to unsettle markets, despite criticism from Russia and China. The Nasdaq 100 climbed 0.8% to 25,401.32 points and the S&P 500 added 0.6% to 6,902.05 points, supported in particular by continued strength in semiconductor and chip-equipment names like Applied Materials, Lam Research, ON Semiconductor and KLA, while defence stocks including Aerovironment, Lockheed Martin and Northrop Grumman also rallied.

US manufacturing PMI falls in December

Markets largely ignored weak macroeconomic data on Monday: US manufacturing activity declined further in December, with the ISM Manufacturing PMI slipping to 47.9 from 48.2 in November, according to data released on Monday. The headline index marked its lowest level of the year and reflected faster contraction in the sector, even as the broader US economy remained in expansion for a 68th consecutive month. Demand indicators such as new orders (47.7), backlogs (45.8) and new export orders (46.8) stayed in contraction but improved slightly, while production (51) continued to grow and employment (44.9) shrank at a slower pace.

Asian equities lifted by chipmakers

Asian stock markets extended gains on Tuesday, with Japan’s TOPIX index climbing 1.5% to a record high and the Nikkei 225 also trading close to all-time highs, gaining 1.3%, supported by broad-based buying in technology, industrial and export-oriented shares. Chip-related stocks led the advance across the region as investors continued to price in strong artificial intelligence demand from data centres and advanced computing, with Japanese names such as Renesas Electronics and Rohm rising, and Hong Kong’s Hang Seng gaining 1.7%. Mainland Chinese benchmarks also moved higher, with the CSI 300 up 1.5%. South Korea’s KOSPI gained 1.5%. Australia’s S&P/ASX 200 was trading 0.5% lower, lagging the regional rally.

Swiss industry PMI weakens while services rebound

The Swiss manufacturing purchasing managers’ index fell in December by 3.9 points from the previous month to 45.8, according to data released on Monday, remaining well below economists’ expectations and firmly under the 50-point threshold that signals expansion. The index has now stayed in contraction territory for three years, with brief improvements in August 2024, February 2025 and November 2025 failing to push it back into growth. In contrast, sentiment in Switzerland’s services sector improved markedly at the end of the year, with the corresponding PMI rising by 6.9 points to 52.1, moving back above the growth threshold. The rebound in services was driven in particular by a stronger order situation and clearly exceeded economists’ forecasts. Swiss retail sales also provided a more positive signal in November, with seasonally and calendar-adjusted turnover up 1.3% year-on-year in nominal terms and 2.3% in real terms after a 2.2% increase in October. However, Swiss stocks bucked the positive trend in Europe on Monday, with the Swiss Market Index slipping 0.2%. The Euro Stoxx 50 rose 1.3%, while Germany’s DAX added 1.3% and France’s CAC 40 edged up 0.2%.

Copper hits new record on US demand

Copper prices climbed to a fresh record above USD 13,000 per ton on Tuesday, after rising more than 4% on Monday. The metal has gained over 20% since mid-November, driven largely by a renewed push to ship material to the US, where fears over potential import tariffs under US President Donald Trump have kept domestic prices at a persistent premium, prompting inventory building and raising concerns about shortages elsewhere. Speculative inflows have intensified amid supply disruptions, including a strike at Chile’s Mantoverde mine, past accidents at major operations in Indonesia and the Democratic Republic of Congo, and years of underinvestment in new capacity. The rally in copper has also been supported by record highs in gold, silver and platinum and multi-year peaks in aluminium and tin, as investors focus on critical metals needed for data centres, electric vehicles and the broader energy transition against a backdrop of tariff uncertainty and stockpiling.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: euro-area Purchasing Managers’ Index (10:00), UK Purchasing Managers’ Index (10:30), German Consumer Price Index (14:00) and US Purchasing Managers’ Index (15:45).

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